This entry submitted
by Allen Schirmer, Senior Vice President at United Bank in Vienna, VA.
United Bank is a Member of The ASBC CX Trusted Service Provider
program. Click here to view Allen's profile.
Why do lenders like the government contracting sector? The Assignment
of Claims Act gives a bank the right to have a 1st lien on its
borrower's government accounts receivable and to collect them directly
from the government. This provides the Bank with the highest quality
source of repayment: Uncle Sam.