Federal Contract Factoring

A federal award is a promise of revenue, not cash in hand. Between performance and payment sit prompt-payment timelines, invoice review cycles, and Net-30 to Net-90 terms — while payroll, subcontractors, and materials come due every two weeks regardless.

The larger the prime or subcontract you win, the wider that gap becomes. Many capable contractors get squeezed not because the work is unprofitable, but because they have to fund weeks of performance before the government remits a single dollar.

You deliver the work and invoice the agency as usual. Encore factors that federal contract receivable and advances up to 90% of its value — often within 48 hours of approval. When the agency pays, you receive the balance, less a transparent fee.

For federal awards, funding is set up through an assignment of claims so payment is directed to a designated lockbox. Encore handles the assignment paperwork and coordinates with your contracting officer, keeping the process clean and FAR-compliant. It's not a loan and not equity — it's your earned receivables, accelerated, so payroll never waits on a federal payment cycle.

Encore was founded by the original Advance Partners team and has deployed over $25 billion in funding. We understand the FAR, the Assignment of Claims Act, contract mods, and how prime-to-sub payment flows actually move — so underwriting fits federal awards instead of fighting them.

Whether you're a prime managing a multi-year IDIQ or a subcontractor funding payroll on a single task order, the line scales with your contract volume. Win a bigger award and your available funding grows with it.