Contractors · Invoice factoring
Invoice factoring for contractors and subcontractors
A subcontractor can finish the work and still wait 45 to 90 days for the general contractor to pay. Construction factoring advances cash against approved pay applications and invoices.
What to know
What contractors should know about construction factoring.
General contractor credit is underwritten.
The provider evaluates whether the general contractor or owner is likely to pay, not just your business.
Lien waivers and paperwork matter.
Providers typically require approved pay applications and may require lien waivers, so organized documentation speeds funding.
Retainage is usually excluded.
Held-back retainage is commonly not advanced until it is released, so plan cash flow around that gap.
Not every invoice is eligible.
Disputed work, change orders without approval or unapproved billings may be excluded. Clear approval makes an invoice easier to fund.
FAQ
Common questions from contractors.
Can subcontractors factor invoices?
Yes. Many factoring providers work with subcontractors and fund against approved pay applications, subject to the general contractor’s credit and the provider’s requirements.
Does factoring affect my relationship with the general contractor?
The general contractor is typically told to pay the provider. Some find this routine in construction, but ask whether a notification-light arrangement is available.
Can I factor retainage?
Usually not until it is released, though some providers have specific retainage products. Ask directly before assuming.
Is Truidian a lender or factoring company?
No. Truidian is a business solutions company. It helps businesses identify and connect with participating third-party providers, who make every approval, pricing and terms decision.
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Truidian is a business solutions company, not a lender, factoring company or payment processor. Financing and services are offered by participating third-party providers and are subject to their approval and terms. Approval, funding, rates and terms are not guaranteed.