Promoted Method of Funding by the United States Government
Assignment of Claims Act of 1986 Promotes:
Purchase Order Funding
Elimination of Inconsistent Cash Flow
Receipt of Payment In A Shorter Period of Time
The Assignment of Claims Act of 1986 allows a government contractor to assign its rights to be paid amounts due or to become due as a result of performance of a contract. This means, that the United States government encourages their vendors to seek accounts receivable factoring of their invoices. This helps them to grow, improve cash flow, increase performance, and be more competitive.
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