Situation
Government clients pay reliably but often slowly; that timing is what is read.
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Short answer: Yes. Businesses serving federal, provincial or municipal governments receive payments that are secure but can take longer than private clients, especially near fiscal year-end in March. Reviewers read that timing. Signed contracts or standing offers, payment history from the government client and diversified clients help.
Key facts
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Government clients pay reliably but often slowly; that timing is what is read.
Businesses serving federal, provincial or municipal governments receive payments that are secure but can take longer than private clients, especially near fiscal year-end.
Show the contract, the payment history and when the next payments are expected.
An IT consulting firm depositing about $90,000 a month asks for $30,000 for payroll during a delayed payment cycle. At a 1.2 factor the payback is $36,000, a cost of $6,000. Over roughly 6 months that is about $286 per business day, or close to 7% of monthly deposits.
Every figure on this page is illustrative arithmetic in Canadian dollars. It is not an offer, a quote or a promise of approval.
The federal fiscal year ends March 31. Delays around that date are common and worth anticipating in your cash plan.
Public-sector clients rarely fail to pay, which is why their slowness is usually read as a timing issue rather than a risk. Keep copies of purchase orders and invoice acknowledgements from the government client; they help explain timing.
Merchant Fund Express reviews Canadian businesses in every province and territory. If you would like a specific answer for your business rather than general guidance, send a signed application and your last four months of business bank statements, or call (305) 384-8391 first to ask a question.
By planning for payment cycles of 30 days or more and the slowdown around fiscal year-end. A short advance tied to a signed contract can cover payroll and materials until payments arrive.
Reviewed by the Merchant Fund Express team on October 12, 2026. Official pages checked as of that date.
They are reliable but slow.
Payment delays often occur near fiscal year-end.
Some factoring firms do; ask.
Educational information only. It is not legal, tax or accounting advice.
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