Federal contractors hold some of the most reliable receivables in the American economy. They are sovereign-backed, earned, and payable by the U.S. government. And still, most contractors can’t get capital against them on terms that fit their business.
Parabilis built Federal Market Credit to close that gap. As the originating institution and category leader in FMC, we’ve put the model to work across the full contractor lifecycle: through normal operations, through growth transitions, and through a government shutdown that cut inbound payments across our portfolio by 60 to 70 percent almost overnight.
Our white paper The Case for Federal Market Credit lays out how the model works and what it changes for the contractors who use it.
What the paper covers:
- How FMC works in practice: a revolving line of credit secured by billed invoices, unbilled invoices, and delivery orders, with advances calibrated to each stage of the federal cash flow cycle
- Why “credit” and not “lending” is the right frame, and how a mission-aware lender responds differently when payments stall
- Five domains where FMC changes outcomes, including survival through volatility, team retention, pricing confidence, and strategic teaming
- The systemic case for why a capital model built for the federal market strengthens the small-business supplier base as a whole
One thing worth knowing: a services contractor billing $1 million a month typically carries $500,000 to $1,000,000 in receivables that are real, earned, and completely illiquid until the government processes payment. FMC turns that waiting game into working capital, available as the collateral accumulates rather than weeks later.
This is the third of three. Start the series with The Capital Gap in Federal Contracting →