I am looking for a factoring company that purchases accounts receivable specifically from the construction industry.

Yes. Since you’re in the South Bay/Los Angeles area, I found several options worth investigating, including firms that specifically handle construction receivables, progress billings, and contractor/subcontractor invoices.

Construction-focused factoring companies

1. J D Factors — Rancho Palos Verdes

   • Very close to you.
   • Offers accounts-receivable factoring, including non-recourse factoring for qualifying invoices.
   • Worth asking specifically whether they will purchase your construction progress billings and how they handle retainage, lien waivers, and pay-when-paid clauses.

2. Riviera Finance — Santa Fe Springs

   • Established factoring company offering AR/invoice factoring for B2B companies.
   • Their model involves purchasing eligible invoices and advancing cash against them.
   • Local Southern California office makes this a convenient option.

3. Transwest Capital — Long Beach

   • Local factoring company serving Southern California.
   • Offers invoice factoring and working-capital solutions.
   • Particularly worth contacting if you're looking for a hands-on local factor.

4. 1st Commercial Credit

   • Specifically advertises construction invoice factoring for contractors, subcontractors, suppliers, staffing companies, and utility/cable contractors.
   • They say they can fund approved construction invoices/progress billings and advertise setup in 3–5 days.

5. Crestmont Capital

   • Specifically offers construction factoring and says it works with contractors, subcontractors, and construction suppliers.
   • It advertises 80–90% advance rates on eligible approved progress billings, with the balance released after the customer pays.

6. REIL Capital

   • Specifically markets construction invoice factoring and says it advances 70–85% of approved progress billings.
   • This could be particularly relevant if your receivables are from general contractors and you're waiting 30–90+ days for payment.

One important issue with construction factoring

Construction factoring is considerably different from ordinary invoice factoring. A factor will likely want to examine:

• Whether you're a GC, subcontractor, supplier, or specialty contractor
• Who owes you the money (GC, owner, government agency, etc.)
• Whether the invoice is an approved progress billing
• Retainage
• Pay-when-paid/pay-if-paid provisions
• Lien waivers
• Joint-check arrangements
• Whether the project is bonded
• Whether there are disputes/change orders
• Your A/R aging and WIP reports

These issues can make an otherwise good-looking construction receivable unfundable.

I can narrow this down substantially

If you tell me (1) what type of construction you do, (2) whether you're a GC or subcontractor, (3) approximate monthly A/R you want to factor, (4) typical payment terms such as Net 30/60/90, and (5) whether the invoices are already approved by the GC, I can research 5–10 factors that specifically buy that type of construction receivable, compare their advance rates, fees, recourse/non-recourse terms, minimums, and construction restrictions, and identify the best ones to call first.

Finding a factoring company that handles construction accounts receivable can be challenging because many traditional factors avoid the industry due to complexities like progress billings, retainage, and mechanics' liens . However, several specialized companies actively purchase invoices from commercial contractors, subcontractors, and construction suppliers.

A breakdown of reputable factoring companies that specialize in or explicitly support the construction sector includes:

• Riviera Finance - Provides working capital and commercial construction invoice factoring with decades of experience handling slow-paying commercial clients in the building trades.
• 1st Commercial Credit - Offers targeted accounts receivable financing and progress billing support specifically tailored for commercial contractors and trade professionals.
• Capstone Corporate Funding - Noted for single-invoice and spot-factoring options for general contractors and subcontractors, meaning you don't always need a rigid, multi-year whole-turnover contract.
• Commercial Funding Inc. (CFI) - Works directly with subcontractors and construction-related businesses on structured accounts receivable advances.
• Business Factors & Finance - Specializes in construction invoice factoring for everything from large commercial general contractors down to specialized trade sub-contractors (electricians, plumbers, HVAC, etc.).
• Apex Capital - Offers construction invoice factoring geared toward helping contractors and trade companies smooth out cash flow gaps while waiting on milestones or project completions.

Quick Tips Before You Apply

• B2B Only: Most construction factors will only look at commercial, industrial, or government projects (General Contractor→right arrow→ Subcontractor). Work billed directly to residential homeowners (B2C) generally cannot be factored.
• Retainage Exclusion: Keep in mind that standard advance rates for construction (usually 7 0% to 8 5%) typically exclude the 5% to 1 0% retainage portion until the project is officially signed off and closed out.
• Debtor Creditworthiness: Approval depends heavily on the credit strength and payment history of the General Contractor or project owner who ultimately pays the invoice, rather than just your own company's credit score.

To help narrow down the best fit, could you let me know:

• Are you looking to factor progress billings or completed single invoices?
• Roughly what is your monthly billing volume?

Finding a factoring company that explicitly handles construction accounts receivable can be challenging because many traditional factors avoid the industry due to complexities like progress billings , retainage, and mechanic's liens. However, several established commercial finance companies specialize specifically in construction contractors, subcontractors, and suppliers.

Dedicated Construction Factoring Companies

• 1st Commercial Credit - Offers specialized 1st Commercial Credit Construction Factoring tailored for commercial contractors and subcontractors waiting on slow-paying general contractors.
• Riviera Finance - Provides dedicated Riviera Finance Commercial Construction Invoice Factoring with decades of experience handling commercial construction cash flow gaps.
• Business Factors & Finance - Focuses heavily on Business Factors Construction Factoring Services , accommodating general contractors, specialty trade subcontractors, and heavy material suppliers.
• REIL Capital - Provides REIL Capital Construction Invoice Factoring that explicitly supports progress billings and final project invoices without restrictive long-term contracts.
• Commercial Funding Inc. - Specializes in Commercial Funding Inc. Construction Factoring for established commercial trade contractors.

What to Keep in Mind for Construction Factoring

1. B2B Only: Factors will only purchase invoices owed by creditworthy commercial general contractors, developers, or government/institutional entities . Direct-to-consumer or residential homeowner invoices are generally ineligible.
2. Progress Billings vs. Completed Work: Ensure the factor explicitly permits progress billings or milestone draws if your contracts are structured that way, as some simpler invoice factors require work to be 100% complete and billed in a single stage.
3. Advance Rates & Fees: Expect advance rates typically ranging from 7 0% to 8 5% (sometimes up to 9 0%) upfront, with remaining balances released minus factor fees once the general contractor pays.

To help narrow down the best fit, are you looking to factor progress billings for a subcontractor business, or do you primarily bill upon project completion ? Feel free to share your approximate monthly invoice volume as well.

Yes. If your goal is specifically to sell/purchase construction accounts receivable, rather than take a conventional construction loan, there are several companies worth contacting.

Strong construction-focused options

1. Riviera Finance — Particularly interesting because it has been providing working capital to commercial construction companies for 50+ years and specifically purchases construction receivables.

2. Brickell Capital Finance — Miami-based and specifically describes a process where the lender purchases the contractor's invoices/accounts receivable and advances cash against them.

3. Construction Invoice Factoring — Delray Beach company specifically focused on construction invoice factoring, including construction companies dealing with progress/milestone billing.

4. 1st Commercial Credit — Has a dedicated construction-contractor factoring program. It says initial funding can take 3–5 working days, with rates advertised starting at 2.5%. It specifically addresses contractors waiting 60–120 days for payment. www.1stcommercialcredit.com
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5. Bankers Factoring — Specifically purchases creditworthy construction invoices and advertises advances of up to 93%, depending on the transaction. www.bankersfactoring.com
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6. Contract Credit, Inc. — Offers factoring for general contractors and construction companies, including funding intended for payroll, suppliers, insurance, and project expenses. www.contractcredit.com
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7. Crestmont Capital — Specifically markets construction factoring for contractors, subcontractors, and construction suppliers, including progress billings and A/R, and advertises 80–90% advance rates. www.crestmontcapital.com
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One important distinction

Construction factoring can be substantially different from ordinary invoice factoring because of retainage, progress payments, pay applications, lien waivers, change orders, conditional payment clauses, and "pay-when-paid" provisions. A factor that handles ordinary B2B invoices may not want construction receivables.

If you're looking to sell the receivables outright (rather than borrow against them), I'd specifically ask each factor:

• Do you purchase construction A/R, or is this technically a loan?
• Do you handle progress billings/pay applications?
• Do you purchase invoices subject to retainage?
• Do you require recourse if the GC doesn't pay?
• What is the advance rate?
• What is the factoring fee, including escalators?
• Is there a minimum monthly volume?
• Do I have to factor my entire ledger, or can I choose individual invoices?
• Will you notify my general contractors of the assignment?

If you tell me (1) what type of construction company you are, (2) approximately how much A/R you want to sell, (3) who owes the invoices—GCs, government, commercial customers, etc.—and (4) what state you're in, I can narrow this down to the 3–5 factors most likely to buy your specific receivables and compare their terms.

Finding a factoring company that works with the construction industry can be tricky because many traditional AR lenders avoid it due to complex issues like project retainage, progress billings, and mechanic's liens. However, several established firms specialize specifically in commercial construction and contractor financing:

• Riviera Finance : Provides commercial construction invoice factoring with a long-standing history (over 50 years) of funding contractors, subcontractors, and suppliers facing 30-to-90-day payment delays.
• Capstone Corporate Funding : Specializes in single-invoice and construction factoring for general contractors and subcontractors without forcing multi-year contracts, allowing you to fund specific project gaps on an as-needed basis.
• Business Factors & Finance : Focuses heavily on construction invoice factoring for both commercial general and subcontractors across a wide range of trades (electrical, HVAC, plumbing, steel fabrication, etc.), even accommodating challenging credit profiles.
• 1st Commercial Credit : Offers tailored construction contractor programs that evaluate credit based on the general contractor or project owner rather than just your business's operating history.
• Apex Capital : Well-known across multiple B2B sectors, they provide dedicated construction factoring services designed to help contractors, subcontractors, and material suppliers smooth out cash flow.

If you'd like to narrow this down, let me know:

• Are you a general contractor or subcontractor?
• Do your invoices involve progress billings or retainage , or are they billed upon completion?

I can help identify which of these options handles your specific billing structure best.

Yes. Construction is a specialized niche in factoring because invoices often involve progress billing, retainage, lien waivers, pay applications, and "pay-when-paid" contract terms. Many general factoring companies won't purchase these receivables, so it's worth working with a factor that understands the industry.

Here are several well-established companies that specialize in or have dedicated programs for construction accounts receivable:

What to ask before choosing a factor

Construction factoring differs from standard invoice factoring, so I recommend asking:

• Do you purchase construction invoices or only standard commercial receivables?
• Will you factor progress billings?
• How do you handle retainage?
• Are your agreements recourse or non-recourse?
• Is there a long-term contract or monthly minimum?
• What percentage do you advance (typically 80–95%)?
• Do you require notification to my customers?
• Have you worked with my type of projects (commercial, residential, government, municipal, etc.)?

If you're a subcontractor

Some factors are much more comfortable purchasing invoices from subcontractors working for large, creditworthy general contractors than others. Companies like 1st Commercial Credit, Capital Plus Financial, and Contract Credit are frequently mentioned for this type of work.

If you tell me:

• your state,
• whether you're a general contractor or subcontractor,
• your approximate monthly invoice volume, and
• whether your projects are commercial, residential, or government,

I can narrow the list to the companies that are most likely to approve your receivables.

Yes. Construction is a specialized niche in the factoring industry because of issues like progress billings, retainage, lien waivers, and "pay-when-paid" contract clauses. You'll generally want a factor that specifically understands construction receivables rather than a general factoring company.

Here are several well-established firms that work with construction contractors and subcontractors:

When comparing companies, ask these questions:

• Do you purchase progress billing invoices?
• Will you factor invoices that include retainage, or only the earned portion?
• Do you work with AIA billing forms?
• Are you comfortable with public/government contracts?
• Is the factoring recourse or non-recourse?
• What are the advance rate (often 80–95%) and total fees?
• Is there a long-term contract or minimum monthly volume requirement?

To help narrow it down, could you tell me:

1. Are you a general contractor, subcontractor, or material supplier?
2. Approximately how much in invoices are you looking to factor each month?
3. What state is your business located in? Some factors have stronger regional expertise.

Several accounts receivable factoring companies specialize explicitly in the construction industry, handling the unique challenges of the sector—such as progress billings , retainage, and slow-paying general contractors.

Top options that purchase construction-specific accounts receivable include:

• 1st Commercial Credit — Well-known for commercial construction and progress billing support, offering flexible terms and high advance rates (up to 9 5%).
• Riviera Finance — Specializes in commercial construction invoice management and provides non-recourse factoring options with decades of industry experience.
• Apex Capital — Offers dedicated construction invoice factoring designed to turn slow-paying or outstanding applications into 24-hour working capital.
• altLINE — A division of The Southern Bank that handles large B2B construction invoices with competitive advance rates and transparent fee structures.
• Mobilization Funding — Specifically tailored for commercial contractors and subcontractors needing help smoothing out cash flow gaps and progress payment cycles.

To help narrow down which of these companies fits your exact needs, please let me know:

• Are you billing for completed work or progress billings / milestone phases?
• What is your average invoice amount or monthly volume?
• Do you prefer a recourse or non-recourse agreement?

Yes. Construction receivables are a specialized niche because of issues like progress billing, retainage, lien rights, and "pay-when-paid" contract clauses. You'll generally want a factor that specifically understands construction rather than a general invoice factoring company.

Here are several well-known companies that work with construction accounts receivable:

When comparing providers, ask these questions:

• Do you factor construction progress billings?
• Will you purchase invoices that include retainage, or only the earned portion?
• Do you work with AIA billing?
• Is the agreement recourse or non-recourse?
• Are there monthly minimums or long-term contracts?
• Can I factor only selected invoices ("spot factoring")?
• What are the advance rate (often 80–90%) and total fees?

If you're a subcontractor, the factor will also want to understand:

• Who your customers are (general contractors, developers, municipalities, etc.).
• Whether your invoices are approved.
• Whether any lien waivers or retainage affect collectability.

If you tell me:

• your state,
• whether you're a general contractor or subcontractor,
• your approximate monthly invoice volume, and
• whether the work is commercial, residential, or government,

I can narrow the list to the factoring companies that are the best fit for your business and likely to offer the most competitive terms.

Several factoring companies specialize in purchasing accounts receivable from the construction industry, providing immediate cash for invoices often delayed by pay-when-paid terms.

Here are leading factoring companies that specialize in construction:

• 1st Commercial Credit: Offers specialized construction factoring for contractors, subcontractors, and service providers. They provide immediate cash for invoices (80%–90% advances) and can assist with payroll funding.
• Riviera Finance: Focuses on commercial construction invoices, guaranteeing 24-hour funding to help with cash flow for payroll, equipment, and materials.
• American Receivable: Offers flexible, non-recourse factoring for construction subcontractors, allowing you to select which invoices to factor.
• Fundbox: Provides, according to their site, a streamlined, technology-driven approach to invoice factoring.

Construction Factoring Highlights:

• Approval Basis: Focuses on the creditworthiness of your customers (General Contractors or Project Owners) rather than your own credit history.
• Advance Rates: Typically, you can receive 70%–90% of the invoice face value upfront.
• Requirements: Generally requires a minimum of one year in business and monthly revenue of $100,000+ to qualify for specialized construction programs.
• Application Process: Most companies, like 1st Commercial Credit , offer online applications with funding available within 24–72 hours.

To provide the most relevant options, are you looking for:

• Non-recourse (the factor takes the risk of non-payment) or recourse (you take the risk) factoring?
• Do you need to factor all invoices or just specific, slow-paying ones?
• What is your average monthly invoice volume?