How Government Contract Financing Works
You won the contract — but the government pays on Net-30 to Net-90 terms while your costs come due now. Here's how Encore advances up to 90% of your invoice so you never have to wait on a federal check to grow.
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Fast, no-obligation. A specialist responds within 24 hours.
The 4-step funding cycle
From the work you've already delivered to cash in your account — here's exactly what happens.
- 1
Deliver the work
You perform under your federal contract or task order — staffing, IT, construction, professional services — and complete the deliverable you're owed for.
- 2
Invoice the agency
You submit your invoice to the government on standard Net-30 to Net-90 terms. Instead of waiting weeks or months for payment, you send a copy to Encore.
- 3
Encore advances up to 90%
Once the invoice is approved, Encore advances up to 90% of its value — often within 48 hours. You get working capital now to make payroll, pay subcontractors, and take on the next award.
- 4
Agency pays, you get the rest
When the federal agency remits payment, the advance is settled and you receive the remaining balance, less a transparent fee quoted up front. No fixed monthly payment, no debt on your books.
Why this beats borrowing
A bank loan or line of credit is capped by your balance sheet and slow to adjust. A merchant cash advance is expensive, daily-draw debt. Financing your invoices is different: it's your own receivables, accelerated.
There's no fixed monthly payment and no dilution. Because underwriting focuses on the federal government's creditworthiness — one of the most reliable payers in the world — your funding line grows as your contract volume grows, instead of being capped by last year's financials.
Built specifically for federal contractors
Encore was founded by the original Advance Partners team and has deployed over $25 billion in funding. We understand FAR, prompt-payment timelines, contract mods, and the realities of working with federal agencies — so approvals are faster and underwriting actually fits how GovCon works.
Whether you're a prime managing a large IDIQ or a subcontractor on a single task order, financing scales to your pipeline.
Frequently asked questions
Is government contract financing a loan?
No. It's invoice factoring — an advance against receivables you've already earned. There's no fixed monthly repayment and it doesn't appear as debt the way a bank loan does, and it's not equity, so you keep full ownership.
How much of my invoice can I get advanced?
Up to 90% of an approved invoice's value. You receive the remaining balance, minus a transparent fee, once the federal agency pays.
How fast does funding happen?
Approval is typically within 48 hours. Once your line is set up, advances on new invoices can fund in as little as one business day.
What does it cost?
Pricing is a transparent fee on the invoice amount, quoted up front before you commit. A funding specialist will walk you through exact terms for your situation.
Who qualifies?
Prime contractors and subcontractors who invoice federal agencies on Net terms — across staffing, IT, construction, and professional services. Underwriting focuses on the government's creditworthiness, so it's accessible to newer and growing firms.
Ready to stop waiting on government payments?
Get up to 90% of your invoice value advanced. Apply in minutes.