Fund Your GovCon Business
Simple, impactful financing for government contractors at every size and stage. Encore turns approved federal receivables into working capital, so you can make payroll, mobilize new awards and grow without waiting 30 to 90 days on the agency.
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Built for government contractors
Long government payment cycles
Federal and state agencies routinely pay on Net 30 to Net 90 terms, and budget delays push timelines further. Encore advances against your invoices so you can keep performing while agencies process payment.
Contract-driven cash flow gaps
GovCon cash flow is uneven: rapid growth tied to awards, then gaps between projects. Receivables funding scales with your invoice activity, supporting both execution and growth.
Rapid onboarding and payroll scaling
A new contract can mean onboarding dozens or hundreds of people before a single invoice is submitted. Encore provides the capital to build your team and cover payroll from day one.
Compliance-heavy environments
Government contracts require strict documentation, invoicing standards and reporting. Encore helps simplify those demands so your team stays focused on performance.
Workforce ramp-up for awarded contracts
When the largest contract in your history lands, it should feel like a win, not a cash-flow emergency. Flexible capital lets you ramp quickly and deliver.
Multi-agency contract management
Multiple agencies mean multiple invoicing formats, payment timelines and compliance requirements. Encore's back-office expertise consolidates that complexity.
Updated October 2026
What is government contractor financing?
Government contractor financing gives you access to the cash tied up in unpaid government invoices before the agency pays them. The most common form is receivables financing, also called government invoice factoring: you assign approved receivables to a funding partner and receive most of their value now instead of waiting out the federal payment cycle.
It exists because of a structural mismatch. Agencies pay on Prompt Payment Act terms, often 30 days after a proper invoice and longer in practice, while payroll, subcontractors, materials and bonding come due first. Financing closes that gap so you can operate and grow without floating the receivables yourself. See how government contractors get paid for the full cycle.
How Encore's government receivables financing works
Because the Assignment of Claims Act lets contractors direct federal payments to a financing institution, the arrangement is a routine, FAR-sanctioned transaction:
- Apply. Share your contracts and an accounts-receivable aging report. You'll hear back with pricing within 24 hours.
- Onboard. Encore reviews your contracts and SAM.gov record and files the Notice of Assignment with the contracting officer and paying office. Most clients onboard in two to three weeks.
- Invoice and get funded. Keep invoicing in PIEE (formerly WAWF), IPP or your agency's system. Encore advances 80 to 90% of each approved invoice, funded the same or next day once your account is active.
- The agency pays Encore. You receive the remaining balance, less the fee quoted up front.
Accounts receivable financing vs. contract financing
The FAR has its own contract financing tools: progress payments based on costs (FAR 32.5), performance-based payments (FAR 32.10) and, rarely, advance payments (FAR 32.4). They only apply when your contract provides for them, and they are negotiated with the contracting officer. See the FAR Part 32 financing guide for how each works.
Accounts receivable financing works on any contract that permits assignment of claims, which most do. It does not change your contract; it simply accelerates payments you have already earned. Many contractors use both.
What you can use the capital for
- Payroll, on time every cycle, which is critical for staffing firms paying weekly against Net 30+ terms.
- Mobilization for new awards and task orders: hiring, equipment and startup costs before the first invoice. See mobilization funding.
- Subcontractors, materials and bonding on construction progress invoices.
- Growth: bidding on larger IDIQ and GSA Schedule work you would otherwise have to pass on.
Government contractors we fund
Encore finances prime contractors and subcontractors in the industries where the cash-flow gap bites hardest: staffing, construction, IT and professional services, plus small businesses of every certification type, including 8(a), WOSB, SDVOSB, VOSB and HUBZone.
If you invoice a federal agency or a prime contractor on net terms, you likely qualify.
Financing vs. other funding options
- Versus a bank loan: receivables financing isn't debt with fixed repayments, and it underwrites on the strength of the government payer rather than only your balance sheet. Compare factoring and bank loans.
- Versus a line of credit: a credit line has a fixed ceiling; receivables funding grows with your billed contract volume. Compare factoring and lines of credit.
- Versus an SBA loan: SBA loans can be useful long-term capital but take longer to close and are sized to your financials, not your contracts. Compare factoring and SBA loans.
- Versus a merchant cash advance: an MCA is a high-cost product repaid from daily or weekly sales. Factoring advances revenue you have already earned. Compare factoring and MCAs.
Beyond capital
Funding is only part of what Encore provides. Government contractors can also tap Encore's back-office technology and support, which consolidates invoicing, payroll and compliance reporting, and strategic consulting to strengthen operations and position the business for sustainable growth.
Encore brings 30+ years of specialty finance experience and $35B+ in total funding provided. The team has funded clients through the BP spill, Katrina, 2008 and COVID, and doesn't pull back when conditions get hard. Encore also partners with GovCon Giants to support contractors across the federal market.
Frequently asked questions
What is government contractor financing?
Financing that gives contractors access to cash tied up in unpaid government invoices. The most common form is receivables financing (factoring), where approved invoices are assigned to a funding partner under the Assignment of Claims Act and advanced now.
Is this a loan?
No. Receivables financing advances cash against invoices you have already earned. There is no fixed monthly repayment and it does not add debt the way a bank loan does.
How fast can I get funded?
You'll hear back within 24 hours of applying. Most clients onboard in two to three weeks, and once your account is active, each invoice is funded the same or next day.
How much of each invoice does Encore advance?
Encore advances 80 to 90% of invoice value, with no fixed cap, so available capital grows as you bill more work.
Do I need perfect credit?
No. Underwriting focuses on the strength of the party paying the invoice, a federal agency or a prime contractor, not only your business credit. That makes financing accessible to newer and fast-growing contractors.
Can subcontractors get government receivables financing?
Yes. When you invoice a prime contractor, Encore underwrites the prime's payment strength and terms. The Assignment of Claims process applies when you invoice the government directly.
What do I need to apply?
Basic information about your business, a list of your government and prime customers, and an accounts-receivable aging report.
How much does it cost?
Pricing is a fee on the invoice amount, quoted up front based on your volume, payment terms and contracts. Apply and you'll receive pricing within 24 hours, with no obligation.
Ready to fund your GovCon business?
Apply in minutes. You'll hear back within 24 hours, and once you're active, each invoice is funded the same or next day.