Factoring with MFFG: What It Is and How It Works
Turn your government receivables into working capital in days, not weeks—without adding debt to your balance sheet.
How MFFG Factoring Works
What we do
MFFG buys your invoice (the right to its future cash flow) and gives you cash in days, not weeks. This is an asset sale (a "true sale"), not a loan, so it does not add new debt to your balance sheet.
Why it helps
You turn a pending payment into working capital to run operations, buy inventory, and grow.
Guarantee
We normally require a company guarantee. In practice, that means if certain conditions aren't met (for example, a payer never pays or a representation was inaccurate), you agree to repurchase or otherwise make us whole under the contract.
Collections
Depending on the deal, either MFFG handles collections or you continue to. We'll agree on the method in your offer and contract.
Offer, not guesswork
You'll receive a clear offer (advance and fees) based on the facts of your receivable and payer. No ranges are displayed publicly; your offer reflects your actual situation.
Bottom line: You sell us an eligible invoice; we advance you cash; we (or you) manage settlement; and once the payer pays, we finalize the transaction per the agreement.
What "Factoring" Means at MFFG
Factoring is the sale of accounts receivable. You transfer to MFFG the right to receive payment on a specific invoice (or set of invoices). We pay you most of the invoice value upfront (your advance), then—after the payer settles—we finish the accounting per the contract.
Key differences from a loan:
- True sale: You're selling an asset you already own (the receivable), not borrowing against it.
- Balance sheet: Properly structured, this does not add new debt.
- Speed and simplicity: You get cash in days after acceptance/signing, rather than waiting out a long payment cycle.
Accounting treatment varies by jurisdiction and standards; your advisors have the final say. Our contracts are structured to support true‑sale treatment.
Who It's For
If your revenue is paid or reimbursed by a government (e.g., agencies, public programs, municipalities, or mandated reimbursement schemes), factoring can smooth cash flow without adding leverage.
Typical sectors include healthcare & assistive tech, labs/diagnostics, training & workforce, municipal services, sales of goods to a government, IT/helpdesk, logistics, and more.
The MFFG Process (High Level)
01
Submit
Create an account and share basic company info plus the invoice(s) you'd like to sell. Include award/PO and proof of delivery/acceptance when available.
02
Get an Offer
We review essentials quickly and send you a specific offer for that receivable (or pool). You'll see what we can advance and the fees tied to your situation.
03
Sign & Fund
E‑sign the agreement(s). We fund in days, not weeks.
04
Settlement
Depending on the arrangement, either we handle collections, or you continue to. In both cases, payment and reconciliation follow the contract, and the transaction is closed out cleanly when the payer settles.
What We're Buying (and Not Buying)
✓ Buying
The receivable (the right to the specific future payment) tied to completed/accepted work for a recognizable government payer or program.
✗ Not buying
Disputed, already‑assigned, or ineligible invoices; situations where documentation is insufficient; or receivables that fall outside our underwriting policies at the time of review.
Guarantees & Obligations
What "Company Guarantee" Means
Company guarantee
We normally require a corporate guarantee. If the invoice is ultimately uncollectible for certain defined reasons (e.g., payer non‑payment within an outside period, invalid documentation, prior assignment, lack of eligibility), you agree to repurchase the receivable or otherwise make us whole as set out in the contract.
Why this exists
It aligns incentives and allows us to offer faster funding at better economics than unsecured alternatives.
Specific triggers, timelines, and remedies are defined in your Master Receivables Purchase Agreement (MRPA) and schedule(s).
How We Evaluate and Price
We read each submission as a whole. We don't fund just because a rate target is met, and we don't default to your maximum discount. When the facts support it, we aim to price closer to your comfortable level.
We consider, among other things:
- Your company profile & track record
- Receivable details: amount, expected tenor/timeline, and documentation quality
- Payer reliability & payment history under the relevant program
- Rules of the applicable scheme/program
- The comfortable and maximum discount ranges you share (inputs help us calibrate, but they don't dictate the offer)
- Our portfolio balance & concentrations at the time of your submission
How to help us give you the best possible offer:
Provide complete, accurate information
Up‑to‑date company details and contacts accelerate review.
Share payer context
Role in the reimbursement chain and any available payment history.
Include supporting docs
And a realistic payment timeline.
Be precise and candid
Overly conservative inputs (e.g., a very long payment estimate or a very low maximum discount) can make a receivable look uneconomic or outside policy and may result in no offer.
Your exact economics are delivered in your offer. We do not publish price ranges on the website.
What to Prepare
Company profile
Basic company profile (legal name, registration, contacts, financial history, etc.)
Invoice package
Invoice package (invoice, award/PO/contract, proof of delivery/acceptance)
Payer details
Payer details (who pays, where, how; any known timing patterns)
Context
Context: anything relevant to eligibility, milestones, or expected payment timing
Discount inputs
Your comfortable and maximum discount inputs so we can calibrate—without defaulting to the max
Roles & Communication
Single dashboard
Track what you submitted and where it stands.
Clear next steps
If we need something, you'll see it.
Settlement method
Confirmed in your offer—MFFG‑managed collections or seller‑managed.
Close‑out
When the payer settles, we finalize per the agreement and provide a clear record trail.
FAQs (Short)
Is this a loan?No. It's a sale of your receivable (asset sale), structured to avoid adding new debt to your balance sheet.
Do you always take over collections?No. Sometimes we do; sometimes you do. The offer specifies the arrangement.
How fast is funding?We target days, not weeks, after acceptance/signing and receipt of required items.
Do you purchase every receivable?No. We focus on eligibility, documentation, and payer/program dynamics. If we decline, we'll tell you quickly so you can plan.
What happens if the payer never pays?Your contract defines the remedies. Because we usually require a company guarantee, certain outcomes (like long‑term non‑payment or ineligibility) can trigger repurchase or make‑whole obligations.
Important Notes
All transactions are subject to underwriting, eligibility, and contract.
Accounting and legal treatment can vary by jurisdiction; please consult your advisors.
We continuously improve our policies and may update criteria over time.
Ready to explore?
Create an account, submit your first receivable, and we'll respond with a specific offer tied to your facts.