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If you have a valid contract, including construction contracts, from a creditworthy customer, particularly government entities, you can often receive cash up front rather than waiting for the payments at a later date. This assumes it is a delivered product or an ongoing service. (However, if no service or product has been provided yet on the contract, it is the equivalent of a purchase order.)

The financing of a contract is processed much like a factored transaction. (See Receivables Financing for more information on factoring and the many advantages of this kind of financing).

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