Contract Line of Credit
A revolving facility sized to your awarded contract, not your balance sheet.
Let's size your line of credit.
Two questions to start. No obligation, no credit pull.
How it works
Government contracts routinely run on Net 30–60 payment terms, meaning you carry weeks of labor, materials, and overhead costs before an agency ever pays an invoice. A contract line of credit bridges that gap: it's a revolving facility sized to the value of your awarded contract, so you can draw against it as expenses come due and repay as the agency pays. Unlike a traditional bank line, approval is driven by the strength of your contract and receivables, not three years of financial statements.
The distinction matters most for contractors who are growing. A bank underwrites backward. It asks what your company earned over the last three fiscal years and lends against that history. A contract line underwrites forward, against an award you have already won and the agency's obligation to pay it. A firm that just tripled its revenue on the strength of a new award is a poor candidate under the first test and a strong one under the second.
Because the facility revolves, it also fits the shape of contract work. You draw when payroll and materials come due, repay when the agency remits, and draw again on the next cycle, without re-applying, re-underwriting, or paying interest on capital you are not using.
How the facility is structured.
Draw and repay repeatedly over the life of the contract, not a one-time advance.
Facility limits scale with your contract value, not your historical revenue.
Keep operations funded through the agency's normal billing and payment cycle.
Access funds quickly once the facility is established, with no re-underwriting on each draw.
Contract Line of Credit questions, answered.
How is a contract line of credit different from a bank line of credit?
A bank line is underwritten primarily on your company’s financial history: typically three years of statements, profitability, and balance sheet strength. A contract line is underwritten on the award itself and the receivable it generates, which makes it available to contractors whose recent growth outpaces their financial history.
Do I need to have already won the contract?
Yes. A contract line of credit is sized against an awarded contract. If you are still bidding and need to demonstrate financial capacity to win the award, a financial capability letter is the product that fits that stage.
Can I use it across more than one contract?
Commonly, yes. Facilities are frequently structured across a portfolio of awards rather than a single contract, which gives you a more stable limit as individual contracts start and finish.
How does repayment work?
Draws are repaid as the contracting agency pays your invoices. Because the facility revolves, repayment restores your available limit for the next billing cycle.
Ready to fund your contract?
No obligation, talk to a govcon financing specialist, not a call center. We'll structure capital around your award.