How to Choose the Best Government Contract Factoring Company
Not all factoring companies understand federal contracts. Use these seven criteria to evaluate any partner — and to know what separates a true GovCon specialist from a general factor.
7 criteria that separate the best from the rest
GovCon specialization
Federal receivables run on the Assignment of Claims Act, WAWF invoicing, FAR rules, and agency payment cycles. A general commercial factor may not handle these correctly. Choose a partner that specializes in government contracts and files your Notice of Assignment for you.
Advance rate
This is the percentage of each invoice you receive up front. Look for up to 90%. A higher advance rate puts more of your earned cash in hand immediately, which matters most when you're covering payroll and materials.
Transparent fees
Government factoring is low-risk for the funder (the government pays), so fees are typically modest — often around 1–3%. Insist on a clear, all-in fee quoted up front, with no hidden charges, monthly minimums, or surprise add-ons.
Funding speed
The whole point is to beat the federal payment cycle. The best partners approve in about 48 hours and fund advances on new invoices in as little as one business day once your line is set up.
A funding line that scales
Your working-capital need grows every time you win a bigger award. The right partner offers a line that scales automatically with your invoiced volume — not a fixed ceiling you have to keep renegotiating.
Track record and expertise
Ask how long they've financed federal contractors and how much they've funded. Deep GovCon experience means faster approvals, fewer paperwork problems, and a partner who understands contract mods, retainage, and prompt-payment timelines.
Recourse terms and flexibility
Understand whether the arrangement is recourse or non-recourse and whether you must factor every invoice or can choose. Flexibility to factor selectively, with terms you understand, is a sign of a contractor-friendly partner.
How Encore Funding measures up
Encore Funding was founded by the original Advance Partners team and has deployed over $25 billion in funding. We finance federal receivables exclusively — advancing up to 90% of your invoice value, approving in about 48 hours, handling the Assignment of Claims paperwork, and offering a line that grows with your contract volume.
Use the criteria above to compare any partner you're considering. When you're ready, get a no-obligation quote and see how Encore stacks up for your specific contracts.
Get a Free QuoteFrequently asked questions
What should I look for in a government contract factoring company?
GovCon specialization (Assignment of Claims and WAWF expertise), a high advance rate (up to 90%), transparent low fees, fast funding (~48-hour approval), a line that scales with your contracts, and a strong track record financing federal contractors.
How much does government contract factoring cost?
Because the federal government is a low-risk payer, fees are typically modest — often around 1–3% of the invoice. The best partners quote a clear, all-in fee up front with no hidden charges.
Why use a GovCon specialist instead of a general factor?
Federal factoring requires handling the Assignment of Claims Act, Notice of Assignment, WAWF invoicing, and agency payment behavior. A specialist does this correctly and prices for the low risk of a government payer, so you fund faster and avoid paperwork problems.
What makes Encore Funding a strong choice?
Encore was founded by the original Advance Partners team and has deployed over $25 billion in funding. We specialize in federal receivables, advance up to 90% of invoice value, approve in about 48 hours, handle assignment paperwork, and offer a line that scales with your contracts.
Get a funding decision
Fast, no-obligation. A specialist responds within 24 hours.