Retainage: what to check before applying

What to bring to a funding conversation

Separate approved billings from amounts withheld and document the expected release event.

A current receivables aging, customer contract, actual invoice and proof of accepted goods or services show what the buyer owes.

Identify the buyer, transaction amount and the exact date cash is needed; a specific packet is more useful than a broad sales projection.

How to compare cost and timing

List each step—invoice issue, buyer approval, any advance, collection and release of the remaining balance—on a timeline. Ask for the total cost in dollars if the buyer pays on schedule and if payment is delayed.

A fee quote should explain when charges begin, whether there are minimums, and who receives customer payments.

Decision point

Retainage is commonly excluded from the eligible invoice amount until release conditions are met.

Retainage may remain contingent even when the rest of an invoice is paid.

Compare this proposal with a bank line, trade credit or self-funding using the same transaction and dates. The lowest advertised rate may not cover the cash need at the right time.

Next step

Send a confirmed order or completed invoice and supporting evidence to National Invoice Factoring for an individual review. No financing terms or approval can be inferred from this general guide.