Government Contract Financing

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.
  • Non-recourse.
  • 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