We are the only non-recourse, third-party finance program for government contractors that uses a securitization structure to fund receivables and other federal government obligations that are on our clients’ balance sheet.
On The Financing Spectrum, RCA lies between a bank credit facility and a traditional factoring relationship.
We utilize a Controlled Account structure to purchase both prime and sub contracts, allowing our clients to finance federal contracts at a better rate than they can achieve through other financing arrangements.
- Uncontestable true sale to bankruptcy-remote entity.
- Zero covenants.
- No personal guarantee.
- No term requirements nor termination fee.
- 90% advance rate on prime contracts; 85% on sub.
- Complimentary to (and not in conflict with) regular, on-balance sheet borrowings.
- Unrestricted owner distributions.
- Improvement in Days Sales Outstanding (DSO).
government contract financing