Can You Use Invoice Financing for Government Contracts?

Absolutely — With Zelo’s Bank Guarantee Product

If you’ve ever landed a government contract, you know it’s a big win — and a bit of a headache. The work is steady, the client is credible, the payments are guaranteed... eventually.

But between the initial award and the actual cash in your account, there’s often a gaping chasm of performance guarantees, advance payment guarantees, delayed receivables, and working capital bottlenecks.

You know the drill — your bank wants a 100% cash margin for a bank guarantee, and your suppliers are breathing down your neck for payments. You’ve won the contract, but you’re stuck in financial limbo.

Here’s the good news: Zelo has built a financing model that works for UAE government contracts — from Day 0 to Day 90 and beyond.

Let us explain.

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The Challenge: Big Contracts, Bigger Capital Gaps

Government entities in the UAE — whether it's ADNOC, NMDC, DMT, SEWA, or Dubai Airports — are some of the most reliable buyers you could ask for. However, you do need to extend credit periods as a contractor. 

And fair enough — these are large institutions with complex internal processes. Payments often take time to be cleared. Meanwhile, you’re expected to mobilize, build, deliver, and keep operations humming.

That’s where bank guarantees come in — and where most contractors get stuck.

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The Bank Guarantee Problem: Collateral You Don’t Have

Let’s break it down:

• You win a AED 10M contract
• You’re asked for a 10% Performance Guarantee and a 10% Advance Payment Guarantee
• The bank says: “Sure, we’ll issue that... if you give us AED 2M in cash upfront as margin.”

That’s your liquidity gone. That’s inventory you can’t buy, staff you can’t hire, and tenders you can’t bid on.

It’s not just frustrating — it’s growth-limiting.

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Enter Zelo: Bank Guarantees with Just 30% Cash Margin

Zelo — backed by the International Holding Company and regulated by ADGM FSRA — offers a smarter, faster way to get the financial coverage you need.

Our Bank Guarantee product, powered by our partnership with First Abu Dhabi Bank, lets you secure the guarantees you need — without coughing up 100% in advance.

Here’s how it works:

• You deposit just 30% of the guarantee value
  
  
• Zelo covers the rest, placing a full-value deposit with our banking partner.
  
  
• The guarantee is issued in your company’s name and accepted by major UAE government buyers
  
  
• As your project progresses and you receive milestone payments, your exposure reduces
  
  

No red tape. Just fast, clean issuance.

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And It Doesn’t Stop There: Stack Invoice Financing On Top

Once the project kicks off and you start invoicing your client, Zelo’s core product — invoice financing — kicks in.

You can get immediate cash against every approved invoice you raise on ADNOC, SEWA, Etihad Rail, or any other buyer we’ve onboarded.

This is how we’ve helped subcontractors:

• Mobilize faster with performance guarantees
• Operate smoothly with working capital against invoices
• Scale confidently without chasing banks or jeopardizing cash flow

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Who’s It For?

We built this solution with contractors and subcontractors in mind — those building, fixing, servicing, and maintaining UAE infrastructure.

Whether you’re in:

• Civil construction
• EPC
• MEP
• Oil & gas servicing
• Specialized maintenance
• Roads & infrastructure

If your buyer is a creditworthy government or semi-government entity, you’re eligible.

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Why Government Contracts and Zelo Are a Perfect Fit

Let’s be honest — the risk in government projects is rarely about getting paid. It’s about the timing and the cash flow gaps.

With Zelo, you turn those waiting periods into working periods:

• Your projects don’t stall
• Your teams don’t wait
• Your pipeline keeps moving

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In Summary — Zelo Is the Operating System for Government Contractors

We’re not just a lender. We’re your partner in delivery. With bank guarantee support + invoice financing, you’ll go from winning contracts to completing them without financial friction.

No more waiting. No more “we’ll see what the bank says.” Just:

• 30% cash margin for full guarantee issuance
• Financing against every invoice raised on government buyers
• Backed by IHC, issued via FAB, and trusted across the UAE

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Ready to win — and deliver — bigger contracts with confidence?

Let’s talk.
[CTA: Apply for Bank Guarantee Support + Invoice Financing]

Zelo is a regulated Private Financing Platform under ADGM FSRA and a portfolio company of the International Holding Company (ADX:IHC). Over AED 500M deployed to SMEs since 2020.