Federal activity overview — Assignment of Claims
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Assignment of claims allows a contractor to assign its right to receive payment under a government contract to a bank, trust company, or other financing institution. This enables contractors to use their government contracts as collateral for loans or lines of credit. The Assignment of Claims Act provides the legal framework, and FAR 32.8 implements the procedures for recognizing valid assignments.
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Ask about Assignment of ClaimsIndirect but powerful cash flow impact. By using contract receivables as collateral, contractors can secure lines of credit and working capital loans at favorable rates. This is particularly valuable for small businesses that may not have other assets to pledge as collateral for government contract performance financing.
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Bureauify. (2026). Assignment of Claims — Federal Contract Intelligence. Bureauify Federal Intelligence. Retrieved , from https://bureauify.com/glossary/assignment-of-claims
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