1st Commercial Credit holds a clear lead across construction invoice factoring, frequently highlighted for financing progress billings and tailoring advances for general contractors and subcontractors. When inquiries focus specifically on companies that purchase construction accounts receivable while managing non-recourse risk and collections, Riviera Finance is the usual answer.
Riviera Finance : Offers commercial construction invoice factoring with decades of experience, providing cash advances within 24 hours, bad debt protection options, and funding that does not create traditional debt.[]()
I am constantly running out of cash flow while waiting for invoices to be paid. Who offers invoice factoring with instant approval?
Summary
Recommendations split across multiple providers without a single frontrunner when contractors look for rapid approvals to bridge severe cash flow gaps.
Key Details to Consider for Construction Factoring
Advance Rates: Typically 80% to 90% of the invoice value is paid to you immediately upon approval, with the remainder (minus the factor's fee) released once your client pays the invoice.
Construction Challenges Handled: Unlike standard freight or corporate factoring, construction factoring often deals with retainage, joint check agreements, and slow-paying general contractors or government entities. Be sure to ask each company how they handle retainage and slow progress payments.
If you can share your monthly invoice volume or whether you deal with retainage/progress billing , I can help you narrow down which of these companies fits your exact setup best.
If you're looking for a factoring company that purchases accounts receivable specifically from construction businesses, you'll want a provider experienced with construction contractors, subcontractors, and commercial invoices.
Construction factoring can help you turn unpaid invoices into working capital while waiting for general contractors, property developers, or commercial customers to pay. Some factoring companies also understand construction-specific issues such as retainage, progress billing, lien waivers, and payment terms.
The most important distinction is finding a company that actually buys or factors construction receivables, rather than one that only offers conventional business loans or equipment financing.
Five construction factoring companies worth contacting
These are the strongest starting points I found for U.S. construction receivables.
1. CapitalPlus Construction Services
(Construction specialist)
Focuses on construction contractors and subcontractors, including specialty trades. A good first call if you want a provider centered on construction rather than general-purpose factoring.
Website:
2. 1st Commercial Credit
Specifically advertises construction invoice factoring, progress-billing support, and financing for general contractors, subcontractors, and suppliers.
Published qualification: At least one year in business and $100,000 in monthly revenue from multiple clients.
Worth contacting if you want to compare conventional factoring structures and ask about non-recourse options. Confirm whether your specific construction invoices and project payment arrangements qualify.
Website:
4. Construction Invoice Factoring
A construction-focused receivables financing service associated with Corporate Finance New York. It advertises invoice factoring, progress-billing factoring, and mobilization funding.
Advertises advances against unpaid construction invoices, including progress billings and completed change orders. Its website lists funding amounts from $25,000 to $5 million.
Website:
Source: company program details.
What to ask before selling your receivables
When contacting these companies, ask for a written quote covering:
Purchase structure: Do they actually purchase your accounts receivable, or are they offering a loan secured by receivables?
Advance rate: What percentage of each eligible invoice will they pay upfront?
Total fees: What is the factoring fee, and are there additional wire, setup, minimum-volume, or termination fees?
Construction eligibility: Will they purchase progress billings, approved payment applications, and invoices subject to retainage or pay-when-paid clauses?
Recourse: If your customer does not pay, can the factor require you to buy the invoice back?
Contract requirements: Must you factor all invoices, or can you sell individual invoices?
Let me narrow this down to the best fit
One detail will help me identify companies most likely to purchase your receivables rather than simply offer financing.
What type of construction receivables do you want to sell?
1. Type of business
General contractor
Subcontractor
Construction supplier or material vendor
Other construction-related business
2. Type of receivables
Invoices for completed work
Progress billings or payment applications
Retainage being held by the customer
A portfolio of existing receivables I want to sell
If you're looking for a company that actually purchases construction accounts receivable—not just a lender offering a business loan—I'd start with factoring firms that understand contractor payment applications, progress billing, retainage, lien waivers, and general-contractor payment cycles.
I've found several promising U.S. providers. My top recommendation to investigate first is CapitalPlus Construction Services, because construction factoring is its specialty. I'd also get competing quotes from 1st Commercial Credit and a provider that offers flexible, invoice-by-invoice factoring.
Recommended construction factoring companies
1. CapitalPlus Construction Services
(Best construction specialist)
Focuses exclusively on construction factoring, with programs for general contractors, subcontractors, and specialty trades. Offers invoice, spot, volume, and contract factoring, plus materials financing. Particularly worth contacting if your invoices involve construction-specific documentation.
Website:
2. 1st Commercial Credit
Best for larger receivables portfolios
Has a dedicated construction contractor financing program, including government-related projects and receivables from prime contractors. Its published construction page lists a $100,000 monthly minimum and rates starting at 2.5%; confirm the fee basis and all additional charges in your quote.
Website:
3. Riviera Finance
Best for flexible invoice selection
Explicitly purchases accounts receivable from commercial construction companies. It advertises funding after invoice verification, non-recourse factoring, and the ability to select which invoices to factor. This is a strong option if you want to sell selected invoices instead of automatically factoring everything. Confirm contract minimums; its published FAQ describes a standard six-month term.
Website:
4. Apex Capital Corporation
Best additional national quote
Offers construction invoice factoring and customer collection services. It's worth comparing if you want an established factoring provider alongside construction-focused firms. Ask specifically about your trade, the size of your receivables, and whether the program is recourse or non-recourse.
Website:
5. Construction Invoice Factoring
Best to investigate for progress billing
Markets financing for construction invoices, progress billings, and mobilization needs. Consider this option if your receivables arise from scheduled draws or progress payments rather than conventional completed-job invoices. Verify eligibility for your particular contracts.
Website:
What I would compare before choosing
Don't compare just the advertised discount rate. Ask each provider for a written quote using the same sample invoice.
Question
Why it matters
What percentage is advanced upfront?
Determines how much cash you receive immediately.
What is the total fee through collection?
A small weekly or 15-day fee can become expensive on slow-paying construction invoices.
Is factoring with or without recourse?
Determines who bears specified customer nonpayment risks.
Do you accept progress billings and retainage?
Many construction receivables have special eligibility requirements.
Must I factor all invoices?
Some agreements require minimum volumes or broader account coverage.
Are lien waivers, notices of assignment, or GC consent required?
Important: Non-recourse does not necessarily protect you against disputed invoices, offsets, defective work, or other contractual problems. Have the agreement reviewed before signing.
Let me narrow this down for your company
The best fit depends heavily on the kind of receivables you want to sell. If you share a few details, I can prioritize the most relevant providers.
1. What type of construction business?
General contractor
Subcontractor / specialty trade
Construction materials supplier
Government / public works contractor
2. Approximate monthly receivables to factor?
Under $100,000
$100,000–$500,000
$500,000–$1 million
Over $1 million
3. What kind of receivables?
Approved invoices for completed work
Progress billings / monthly draws
Retainage being held by customers
Government contract receivables
A portfolio of overdue receivables
4. Most important priority?
Lowest total cost
Fastest funding
Protection against customer insolvency
No long-term commitment; select invoices individually
5. Business location
[Input placeholder: State or region] (Current value unavailable.)
[Find my best-fit factoring companies]
One distinction worth clarifying: if you want to sell your own company's unpaid invoices, the firms above are relevant. If you want to sell an entire portfolio of delinquent construction receivables to a buyer, that's a different market and requires a more specialized search.
Finding the right factoring service for a construction company requires specialized providers . Unlike traditional B2B industries, construction factoring involves unique challenges like progress billings, complex lien laws, and retainage.[](https://www.linkedin.com/company/matprosupply)
Top-tier factoring companies that explicitly cater to or specialize in construction accounts receivable financing include:
CapitalPlus Financial Services
Specialty: Dedicated exclusively to the construction industry.
Several factoring companies specialize in purchasing accounts receivable from construction contractors, subcontractors, and specialty-trade businesses. The service is usually called construction invoice factoring or construction accounts receivable factoring.
Rather than waiting 30–90 days for a customer to pay, your company sells eligible unpaid invoices to a factoring company for an immediate cash advance. The factor collects from your customer and pays you the remaining reserve, less its fees. Construction specialists can be particularly useful when invoices involve progress billing, lien waivers, or general-contractor payment terms.
Factoring companies to contact
These are good starting points for U.S. construction businesses, based on their publicly described services.
1. CapitalPlus Construction Services
(Construction specialist)
Focuses on construction financing, including invoice factoring, spot factoring, volume factoring, and materials financing. Worth contacting if you are a general contractor, subcontractor, or specialty-trade contractor.
Offers a dedicated construction contractor factoring program, including financing for certain government-contract receivables and specialty contractors. Its published requirements include at least one year in business and $100,000 in monthly revenue from multiple clients.
Advertises construction-specific invoice factoring for contractors with progress-stage billing. Its published page lists rates starting at 1.59%, although your actual quote may differ depending on your invoices and contract.
Offers factoring for construction and contractor businesses, with a published maximum facility of $2 million and advertised advances of 85–95% of invoice value. Ask how it handles your particular customer and billing arrangement.
Provides receivables factoring for general contractors, home builders, commercial builders, construction managers, and trade contractors. It also advertises collections and back-office support.
Offers construction factoring and receivables financing, with services described for project-based billing and milestone verification. It is another option to compare if your business is based in Florida or elsewhere in the U.S.
These providers appear in industry comparisons of invoice factoring and financing. Confirm that they currently purchase your specific type of construction receivable, rather than offering only loans or other financing products.
What to check before signing
Construction receivables can be more complicated than ordinary business invoices. Ask each company:
Invoice eligibility: Do you purchase invoices from general contractors, commercial property owners, municipalities, or government agencies?
Progress billing: Will you purchase AIA payment applications, partial-completion invoices, or only approved invoices for completed work?
Retainage: Can you factor retainage, or only the portion currently due?
Recourse: If your customer fails to pay, must you buy the invoice back? What does non-recourse protection actually cover?
Total cost: What are the factoring fee, reserve, setup fee, minimum monthly volume, and contract termination fee?
Assignment restrictions: Does your construction contract permit assignment of receivables, and are notices or approvals required?
For an initial comparison, request written quotes from at least three providers using the same sample invoice and payment terms.
I can narrow this down to the best matches for your company
The most suitable factor depends heavily on the type of construction work and who owes you the money.
1. What type of construction company do you operate?
Several specialized factoring companies purchase accounts receivable specifically for construction contractors, helping subcontractors and general contractors manage slow-paying general contractors or long project billing cycles . Because construction invoicing involves complex elements like progress billings and mechanics' liens, specialized firms are required rather than standard freight or retail factors.[](https://www.1stcommercialcredit.com/industries/construction-contractors)
: Provides comprehensive commercial finance and asset-based lending options tailored to small and mid-sized businesses, including specialized contractor and construction funding solutions.
Construction contracts may restrict or complicate the assignment of receivables.
Specialty: Commercial and industrial contractors, including civil and infrastructure projects.
Highlights: Known for fast funding setups, robust credit analysis of general contractors, and experience dealing with the slow-pay cycles typical in commercial construction.
Apex Capital
Specialty: Subcontractors and mid-sized construction trades needing assistance with slow-paying general contractors.
TCI Business Capital (backed by Fidelity Bank): Focuses heavily on industrial, commercial, and construction accounts receivable financing with dedicated industry expertise.
Riviera Finance : Provides non-recourse and recourse invoice factoring across North America, with specific programs designed to handle construction subtrade and contractor cash flow delays.
If you'd like to narrow this down, please tell me:
Are you looking to factor for a general contractor or a specific subcontractor trade?
