Former Banker: Banks Are Not the Cheapest Way to Fund a Government Contract | Craig Cohen
Government contractors who submit invoices to federal agencies can receive up to 90% of that invoice amount the same day through receivables-based funding, at a fee of 2 to 4% of the invoice, without a bank application or a two-to-three-year business history requirement. Craig Cohen, a former commercial banker with 10 years in traditional lending and now a funding specialist at Encore Funding, breaks down how bank fees including application, documentation, ACH, lockbox, monitoring, and unused-line charges routinely make bank rates more expensive than alternative funding, and how a new contractor can access between $50,000 and $500,000 in working capital with a 10 to 15 minute application. What you'll learn in this episode: Why a bank's advertised prime-plus rate is not the true cost once documentation, ACH, lockbox, and monitoring fees are added in How receivables-based funding works: submit an invoice to the government, get up to 90% wired the same day, pay 2 to 4% of the invoice when the government pays in 30 to 60 days Why banks reject businesses under two to three years old and what startup-friendly funding actually requires instead What makes merchant cash advances (MCAs) dangerous: interest rates of 50 to 100% and aggressive repayment schedules that often require a second loan to cover the first How to fill out the Encore application in 10 to 15 minutes using information you already have Chapters: 0:00 - Why the bank rate is not the real cost 1:45 - Merchant cash advances: what to know before you borrow 3:30 - Bank approval vs Encore approval: the time difference 4:45 - Why banks reject newer government contracting businesses 6:00 - How the invoice advance and repayment flow works 8:10 - Calculating fees: what 2 to 4% actually means per invoice Mindy gives you the federal opportunities, agency signals, recompete intel, and pursuit briefs that tell you not just what contracts exist, but which ones to chase and how to win them. Sign up for free Daily Alerts and get opportunities delivered to your inbox before the day starts. 👉 Get your free Daily Alerts here 🔗 https://getmindy.ai Connect with Encore Funding: http://govcongiants.org/funding
