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Nationwide Working Capital Solutions for Contractors and Sub-Contractors.

Construction Factoring – Fast Cash Flow for Contractors

Running a construction business often means waiting 30, 60, or even 90 days for clients to pay invoices. Construction factoring gives contractors and subcontractors immediate working capital by turning unpaid invoices into cash.

What is Construction Factoring?

Construction factoring is a financing solution where a factoring company purchases your outstanding invoices and advances you most of the invoice value upfront. Instead of waiting weeks for payment, you get funds within 24–48 hours.

This helps contractors, builders, and suppliers:

  • Pay employees and subcontractors on time

  • Cover material and equipment costs

  • Take on new projects without funding delays

How Does Construction Factoring Work?

  1. You complete work and issue an invoice to your client.

  2. A factoring company purchases the invoice.

  3. You receive an advance (typically 80–95%) within days.

  4. Once your client pays, the factor releases the remaining balance minus a small fee.

📌 Unlike loans, factoring does not create debt. It’s a sale of receivables, not borrowed money.

Contractor reading designs

Benefits of Construction Factoring

  • Immediate Cash Flow: No more waiting months to get paid.
  • No Debt Added: It’s not a loan, so no long-term liabilities.
  • Flexible Funding: The more invoices you have, the more funding is available.
  • Credit Protection: Factors often check your clients’ credit, reducing your risk.
  • Pay Obligations On Time: Meet Payroll and taxes, pay suppliers, take on larger jobs.

First Capital has extensive experience providing Factoring services to General Contractors and Sub-Contractors of various trades including:

  • Interior Finish
  • Low Voltage
  • Painting
  • Paving
  • Plumbing
  • Roofing
  • Structural Steel
  • Underground Utilities

Factoring versus Bank Loans

  • Banks require strong credit history, collateral, and long approval times.
  • Factoring companies focus on your clients’ creditworthiness, not just yours.
  • Approval is fast and flexible, making it ideal for small and mid-sized construction firms.

Who uses Construction Factoring

  • General Contractors
  • Subcontractors (electrical, plumbing, drywall, etc.)
  • Material Suppliers
  • Heavy Equipment Providers

Factoring is Available For:

Construction Factoring, Sub-Contractor Gets his factoring money
Sub-Contractors earning Construction Factoring

Let the experience and industry expertise of First Capital provide you with a wide range of financial resources. Get started growing your business today.

Commercial Finance Invoice Factoring

Request Our FREE Construction Factoring Guide:
When Banks Say “NO!” The Small Business guide to Factoring.

 From First Capital.

Quit facing difficulties paying suppliers, keeping fixed overhead afloat, or struggling to make payroll due to unpaid invoices. It DOESN’T have to be that way! Get more information on how you can get fast Working Capital from the nation’s best Construction Factoring Service.

Call 1-800-497-7701 or fill out our easy factoring quote form for your FREE no obligation quote today!