The state of Maryland is conveniently located amid a variety of government entities and businesses that service other government locations. The majority of new businesses in the area are designed to work with these government entities or contractors. Throughout the course of business, the need for working capital in order to honor new contracts or provide payroll can become an issue. A new business in the Maryland area, Hitachi Government Finance, has been created to assist in these endeavors.
Many companies can struggle financially as they begin to honor new contracts. The reason for this struggle is that receivables are not generally collected until work has been completed. Although many large contracts are paid out over time as portions of work are completed, the initial start-up associated with a new contract can make initial working capital and payroll difficult to maintain.
In an attempt to assist companies with this financial problem, Hitachi Business Finance has created a new business as one of their divisions. With Hitachi Government Finance, they are attempting to work with government suppliers and contractors to ease the financial burden of new contracts. As will all new contracts, a review of the contract terms and agreements is essential to establishing cash flow and making sound business decisions.
As a new business is created in the Maryland area, the need for working capital becomes evident. Many new businesses will want to establish contracts for business and services. It is often in their best interest to have these contracts reviewed by someone who specializes in such contracts.
Source: abladvisor.com, Hitachi Business Finance launches Government Finance Division, No author, Feb. 21, 2014