Quick answer
Construction & Contractors companies typically wait 45–90 days, often with retainage. Construction factoring advances against approved progress billings so you can staff and supply the next phase.
Key takeaways
- Progress billing, retainage and pay-when-paid clauses leave subcontractors carrying labor and materials for months.
- Common uses: materials, crew payroll, bonding capacity, bidding larger jobs.
- Funding usually arrives within 24–48 hours after setup.
Why is cash flow so tight in construction & contractors?
Progress billing, retainage and pay-when-paid clauses leave subcontractors carrying labor and materials for months.
Payment terms of 45–90 days, often with retainage are the norm, which means profitable companies can still run out of cash while waiting.
The fix: finance your receivables
Construction factoring advances against approved progress billings so you can staff and supply the next phase.
Because approval depends on your customers' credit, growing and younger construction businesses can qualify.
What the funds are used for
Construction & Contractors clients most often use funding for materials, crew payroll, bonding capacity, bidding larger jobs.
Practical cash-flow habits
Invoice the same day work is completed, confirm the customer's approval process upfront, track days-sales-outstanding weekly and keep documentation (POs, delivery proof, timesheets) attached to every invoice — funders pay faster when files are complete.
Get a funding quote in 24 hours
Talk to a National Invoice Factoring specialist at (929) 658-8087 or apply online — no obligation.
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Written and reviewed by the National Invoice Factoring funding team — specialists in receivables and trade finance since 2009.
