Just a guess, but I can't imagine what <avance físico financiero> would be if no <physical finances>, i.e., cash

hth
msg

físico here means actually present

This is the way I would translate your sentence.

Hope it helps,

"físico" would correspond to real. "Avance" in this context is not an advance, but rather refers to the development of the financial process in question.

If you look up "avance físico financiero" in Google in Spanish, you'll see that most of the time it's hyphenated or it's "físico y financiero".
I found these examples (among many others):

The programme will be monitored by a panel of experts and/or any authorized agency. Monitoring of physical and financial progress in relation to time schedule and objectives will be performed of each project applying weighted average methodology as followed by IMED. The Ministry of Science and Technology will develop measurable indicators for monitoring the physical and financial progress and for evaluation in the due course.

As Secretariats will need to produce regular reports on the financial and
physical progress of projects and more general progress towards meeting the
main aims of the Single Programme ...

Following approval of the bid for Technical Assistance, the PME will be able to draw down a 30% advance of the grant which will be available to it in the first year of the bid, and thereafter quarterly claims in arrears following submission of financial and physical progress monitoring information.

Roseanne