Government Contract Factoring Software
Government contract factoring advances cash against invoices owed by federal, state, and local agencies, or by the prime contractors who hold the underlying award. The structure looks like ordinary factoring, but the servicing is harder: work has to be verified against a contract, your interest has to be perfected through assignment-of-claims rules, and payment arrives slowly and in bulk. Zolvo is AI back-office automation for commercial lenders that augments the systems you already run (FactorSoft, LoanPro, QuickBooks, and bank feeds via Plaid), so your team services more contract receivables without adding people. Zolvo automates post-funding servicing only; it does not originate, underwrite, or act as your system of record.
Why government receivables are harder to service
Most of the labor in a government-focused factor is servicing, not underwriting. Before you advance, someone has to confirm the contract invoice is genuine, that the work or milestone was delivered, and that the receivable is not already pledged elsewhere. After funding, agency and prime payments have to be applied, aged balances chased, and concentration watched. It repeats for every account, every cycle, and grows with the contract roster rather than with revenue.
Assignment of claims sets this vertical apart. Perfecting your interest on federal work runs through a Notice of Assignment to the contracting and disbursing officers, and on subcontract work it runs through the prime. Tracking which contracts are properly assigned and where remittance should flow is constant operational work that ordinary trade factoring never touches.
Verify contract invoices before you fund
Zolvo confirms each receivable before you advance against it. Invoice and receivable verification uses multi-channel outreach across phone, email, WhatsApp, and AI voice to check the invoice amount, contract or task-order reference, delivery or milestone status, and payment terms against the underlying contract. Duplicate-pledging and fraud detection flag the same contract invoice financed twice, so funding decisions rest on confirmed receivables.
Reconcile agency and prime payments without the spreadsheet
Agencies, Treasury, and prime contractors pay in batches, short-pay for disputed line items, and remit with references that rarely tie to a single invoice. Matching those deposits back to the receivables you funded is the slowest manual task in the shop. Zolvo parses bank deposits and applies cash with confidence scoring, reaching an 87% automatic match rate and roughly 12x faster reconciliation. Batched, short, and partial payments get applied to the right contract invoice, and your team reviews only the exceptions. See how reconciliation and payment matching works.
Automate collections and monitor concentration
Aged and short-paid government balances need consistent follow-up, not a dedicated chase team. Collections automation runs scheduled reminders over email, WhatsApp, and SMS, answers routine status questions with an AI assistant, and escalates disputed line items by rule. Portfolio and concentration monitoring tracks agency and prime concentration, aging, dilution, advance rates, and covenants, with on-demand reporting for funders and LPs, so a concentrated agency or contract vehicle shows up early.
Results lenders see
| Metric | Outcome |
|---|
| Automatic match rate on payments | 87% |
| Reduction in ops costs | 70% |
| Faster reconciliation | 12x |
| Time to go live | 2 weeks |
Zolvo is SOC 2 Type II, GDPR aligned, and AES-256 encrypted, with strict tenant isolation, so contractor and debtor data stays protected.
Frequently asked questions
Does Zolvo handle assignment-of-claims tracking?
Zolvo automates the servicing work around assigned contracts: verifying the contract invoice, reconciling the agency or prime payment to the right receivable, and monitoring where remittance lands. It is not your system of record and does not file notices of assignment or give legal advice on perfecting your interest.
Can Zolvo reconcile agency and prime payments?
Yes. Zolvo parses bank deposits and matches credits back to the contract invoices you advanced against with confidence scoring, reaching an 87% automatic match rate. It handles batched, short, and partial payments and routes anything it cannot resolve to your team as a clear exception.
Will it replace our existing factoring system?
No. Zolvo augments platforms like FactorSoft, LoanPro, QuickBooks, and bank feeds via Plaid, adding verification, reconciliation, collections, and monitoring on top. Most teams are live in about two weeks.