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

Finding a factoring company that explicitly handles the construction industry is crucial because many general factors avoid construction due to slow payment cycles, progress billings , and mechanic's liens.

Several established factoring companies specialize in or explicitly support commercial construction contractors, subcontractors, and trade professionals:

• Riviera Finance : Offers over 50 years of experience in commercial construction invoice factoring . They provide non-recourse factoring (assuming the credit risk) and handle general contractors, electricians, plumbers, HVAC, and concrete specialists.
• 1st Commercial Credit : Highly experienced in the construction space , offering flexible terms for 30 to 120-day payment cycles , no long-term minimum volume commitments , and funding geared toward payroll and material costs.
• Business Factors & Finance : Explicitly specializes in construction invoice factoring for both general contractors and subcontractors across a wide array of trades (electricians, roofers, drywall, excavators, etc.), with provisions for straightforward credit qualifications.
• Apex Capital : Provides dedicated construction invoice factoring designed to smooth out cash flow gaps and handle client collections directly.
• REIL Capital : Accommodates progress billings and final milestones once work is approved by the project owner or general contractor , offering both recourse and non-recourse structures.

Key Things to Verify with a Construction Factor

• Progress Billings vs. Completed Work: Make sure they explicitly accept progress payments or milestone billings, as many standard factors require the entire project to be 100% finished.
• Retainage Handling: Ask how they deal with withheld retainage (the percentage a GC holds back until the very end of the job).
• Recourse vs. Non-Recourse: Understand whether you are liable if the general contractor delays payment or goes under (recourse) or if the factor absorbs that specific credit risk (non-recourse).

If you'd like, let me know:

• Whether you are a general contractor or subcontractor
• If you need coverage for progress billings or completed milestones

I can help narrow down which of these options fits your specific contract setup.

• Riviera Finance - 17W415 Roosevelt Rd, Oakbrook Terrace, IL 60181, United States
• 1st Commercial Credit, LLC - 401 N Michigan Ave #1200, Chicago, IL 60611, United States
• Financial Capital Resource - 1100 Jorie Blvd, Downers Grove, IL 60516, United States
• 12five Capital - 1 E Erie St, Chicago, IL 60611, United States
• DSA Factors - 3126 N Lincoln Ave, Chicago, IL 60657, United States
• United Capital Funding - 401 N Michigan Ave #1200, Chicago, IL 60611, United States
• Vendor Payment - 17 E Monroe St #108, Chicago, IL 60603, United States
• J D Factors - 490 E Roosevelt Rd #103, West Chicago, IL 60185, United States
• Armitage Street LLC - 211 N Clinton St #2N, Chicago, IL 60661, United States
• Fresh Lending Group - 5411 W Lawrence Ave, Chicago, IL 60630, United States
• Heartland Commercial Funding - 1016 W Jackson Blvd, Ste 928, Chicago, IL 60607
• Heartland Commercial Funding Inc. - 1016 W Jackson Blvd, Chicago, IL 60607, United States
• Capital Depot Inc. - 606 Potter Rd, Des Plaines, IL 60016, United States

Yes. I found several factoring companies that specifically advertise purchasing/financing construction accounts receivable, rather than simply offering generic small-business financing.

Strong candidates

• Riviera Finance — Oakbrook Terrace, IL / Chicago area. Riviera has a dedicated commercial construction factoring program and says it has more than 50 years of factoring experience. It purchases construction receivables and says it can fund invoices within 24 hours after verification.
• 1st Commercial Credit, LLC — Has a dedicated construction contractor factoring program, including subcontractors, GCs, infrastructure, utilities, and specialty contractors. It says it requires at least $100,000/month in revenue and one year in business.
• Sky Business Credit LLC — Chicago-area factoring company that specifically lists construction and contractors among the industries it serves. This could be worth investigating if you're looking for a more local relationship.
• Financial Capital Resource — Western Chicago suburbs; offers construction factoring tailored to commercial construction progress billing, including construction-specific documentation such as lien releases.
• Working Capital of America — Naperville-area provider that focuses on A/R purchasing/factoring and specifically works with construction and trades, including issues such as progress billing, retainage, and pay-when-paid arrangements.

National options worth comparing

• Apex Capital — Dedicated construction invoice factoring, with more than 30 years of factoring experience.
• Bankers Factoring — Dedicated construction factoring and says it can advance up to 90%+ of eligible invoices. It also specifically mentions construction subcontractors and commercial construction.
• A+ Factoring — Construction-specific factoring with no stated monthly minimums on its construction page and funding reportedly available within 24 hours of invoice submission.
• ICG Funding — Particularly interesting for smaller contractors: its current construction program states a $15,000+ monthly revenue minimum, 85–95% advances, and a facility up to $2 million.

One important construction-specific issue

I'd pay particular attention to whether the factor understands retainage, progress billing, lien waivers/releases, pay-when-paid/pay-if-paid clauses, joint checks, and UCC filings. Construction factoring is considerably more complicated than ordinary invoice factoring because an invoice may not represent an unconditional obligation to pay.

If you tell me (1) roughly how much A/R you want to sell, (2) whether you're a GC or subcontractor, (3) your average monthly billings, and (4) whether your customers are private GCs or government entities, I can narrow this down to the 3–5 best factoring companies for your situation and compare their likely advance rates, fees, minimums, and construction requirements.

Yes. What you’re describing is construction invoice factoring / construction A/R factoring: the factor purchases eligible accounts receivable—often approved progress billings—from a contractor, subcontractor, or construction supplier and advances cash before the GC/owner pays.

A few companies worth investigating:

One important issue with construction factoring

Construction A/R is substantially more complicated than ordinary B2B invoices. A good factor should understand progress billings, retainage, lien waivers, joint checks, pay-when-paid/pay-if-paid provisions, change orders, bonded projects, and payment verification. Some factors won't purchase receivables involving retainage or certain bonded projects.

If you're looking for an actual purchaser of the receivables rather than a lender making a loan against them, I'd put CapitalPlus, Riviera Finance, Bankers Factoring, and 1st Commercial Credit near the top of the initial call list.

Since you're in the New York area, there are also nearby firms with construction/A/R capabilities, including CapitalPlus Financial Services in Carlstadt, NJ and Ideal Corporate Funding, Inc. in New Rochelle. The latter specifically lists construction factoring among its A/R programs.

If you tell me (1) your annual revenue, (2) roughly how much A/R you want to factor, (3) whether you're a GC, subcontractor, or supplier, and (4) what states your projects are in, I can narrow this to 3–5 factors that are likely to actually buy your receivables and compare their advance rates, fees, recourse/non-recourse terms, minimums, and construction-specific restrictions.

Several specialized factoring companies purchase accounts receivable specifically for the construction industry , helping general contractors, subcontractors, and trade professionals convert slow-paying or uncollected progress billings into immediate working capital . Notable providers that handle construction receivables include 1st Commercial Credit, Riviera Finance, Mobilization Funding , and Carter Funding . These firms typically advance 80% to 90% of an invoice's value upfront within 24 hours of verification, releasing the remaining balance (minus a fee starting around 1% to 2.5% ) once the project owner or general contractor pays.

Top Construction Factoring Providers

• 1st Commercial Credit : Specializes in seasonal and commercial contractor financing with customized lines tied to progress billings.
• Riviera Finance : Offers commercial construction invoice factoring with guaranteed 24-hour funding turnarounds.
• Mobilization Funding : Focuses heavily on commercial and government subcontractors needing upfront capital and invoice verification support.
• Carter Funding : Provides cash advances for commercial and civil construction invoices with fees starting as low as 1%.

What Factors Look For in Construction Invoices

• Contractor Creditworthiness: Approval depends heavily on the credit profile and payment history of the project owner or general contractor rather than just your business credit.
• Project Documentation: Requirements usually include a signed contract, approved progress billings, and formal waiver/release verifications.
• Completed Milestones: Invoices must reflect satisfactorily completed work or materials delivered free of major disputes or liens.

If you can share the approximate monthly volume of your invoices and whether you are dealing with commercial or residential projects , I can help you narrow down which of these providers aligns best with your specific cash-flow needs.

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.