UKHow quickly does the government pay its contractors?
Under the Prompt Payment Act, a proper invoice is generally due within 30 days, with interest owed automatically on late payment — and agencies have run accelerated policies targeting roughly 15 days for small businesses. The real risk is rejected invoices: errors restart the clock.
Payment runs through electronic systems — Wide Area Workflow (PIEE) for DoD, the Treasury’s IPP for many civilian agencies — against the contract’s line-item structure. Submit exactly per the payment clause, with acceptance by the right government official, and federal receivables are about as bankable as receivables get.
Plan cash flow for the gap anyway: invoice at every allowable milestone, keep SAM banking details current, and walk your first invoice through with the COR so setup errors do not cost you a month.
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