The public payment cycle is not negotiable. But it can be advanced.
Winning a contract with a public agency or a state productive company is the hard part; collecting on time is the other. The public payment cycle is not negotiable — but it can be advanced. IT Capital structures contract advancement and purchase-order financing collateralized by the assignment of collection rights, so the supplier can execute, buy inputs and make payroll without waiting for the budget cycle to close.
The contract is signed and sealed, but the budget calendar is not negotiable.
The supply contract becomes collateral and backs the advance.
Inputs are bought, payroll is paid and the contract is fulfilled, without waiting for the cycle to close.
Of eleven competitors we reviewed, none publishes this. We put it in writing because it is your information: it helps you prepare your case, whether or not you work with us.
Who authorizes it, how often and under what criteria. It is what turns a contract into a dated cash flow.
PEMEX, CFE or a major contractor each have their own procedure. Knowing them is half the work.
Winning the tender and being able to deliver are two different things, and financing only makes sense if both are true.
We do not finance the promise of a public contract. We finance the contract, with its assignment of rights and its estimate mechanics.
The natural product for this sector: Contract Advancement →