Placed through our specialty-factor partners
Factoring for construction: get paid on the pay app, not 83 days later.
70%–85% advance on the non-retained billing, 1.5%–5% per invoice, funded in 24–48 hours once the account is open. Setup takes 3 to 7 business days.
$0 to apply · Soft credit pull · No impact to your credit score · 4-minute application
How this product is routed. Construction factoring is placed through Jobsite Funding's specialty-factor partner network. We underwrite the file, we negotiate the rate, and we tell you which factor before you sign anything. Our in-house working capital and Drawline are the first options we look at on every file.
The short answer
Construction invoice factoring advances 70% to 85% of the non-retained portion of an approved pay application, at 1.5% to 5% per invoice, funded in 24 to 48 hours once the account is set up. Setup takes 3 to 7 business days.
Retainage is not advanced under standard factoring — a separate retainage advance of 60% to 75% at a 2% to 4% fee is available on some files. Jobsite Funding places construction factoring with specialty-factor partners.
Advance rates by contractor profile
| Your profile | Monthly factored volume | Advance rate | Fee range |
|---|---|---|---|
| Newer sub, 1–3 active projects | Under $75,000 | 70%–78% | 3%–5% |
| Established sub, multiple GCs | $75,000–$300,000 | 75%–82% | 2%–4% |
| Mid-size sub or GC, $1M+ backlog | $300,000–$1,000,000 | 80%–85% | 1.5%–3% |
| Larger contractor, established GC roster | $1,000,000+ | 80%–85% | 1.5%–2.5% |
Construction advance rates run below trucking and staffing (80%–95%) because of retainage, backcharge risk and lien complexity. Anyone quoting you 90% on construction paper is either not reading your contract or not telling you about the reserve.
How retainage is handled
Standard factoring does not advance against retainage. On a $60,000 certified billing with 10% retainage, the factorable amount is $54,000 — the factor advances 70%–85% of that, not of the $60,000. The $6,000 retainage is paid directly to you by the GC at substantial completion, outside the factoring arrangement.
Some of our partners offer a retainage advance separately: 60%–75% of the retainage balance at a 2%–4% fee, usually only once the job is at or near substantial completion and the release schedule is documented.
Lien waivers: read this before you sign one
At the time of each advance you will be asked for a conditional lien waiver, which releases your lien rights for that billing period only if the advance is actually paid. That is normal and you should sign it.
Never sign an unconditional waiver before the money is in your account. An unconditional waiver permanently releases your lien rights whether you were paid or not. If a factor or a GC asks for unconditional waivers up front, that is the moment to call your construction attorney — not us.
What you will need
- Business formation documents and EIN letter
- GC or owner contact for credit checks and a notice of assignment
- Executed subcontracts with schedules of values
- Recent certified pay applications (G702/G703 or equivalent)
- Lien waiver templates
- Proof of general liability and workers' compensation
- Voided business check for ACH
- Supporting evidence of work in place — inspection sign-offs, stored-materials documentation
Factoring versus the Drawline
| Factoring | The Drawline | |
|---|---|---|
| What it is priced against | A specific approved invoice | Your business's cash flow |
| Your GC is contacted | Yes — notice of assignment | No |
| Cost | 1.5%–5% per invoice | 1.8%–4% per 30 days on the drawn balance |
| Covers mobilization (pre-billing) | No | Yes |
| Covers retainage | Only via a separate retainage advance | Counts as supporting revenue in the file |
| Speed to first money | 3–7 days setup, then 24–48 hours | 24 hours |
| Who underwrites | Partner factor | Jobsite Funding, in-house |
When factoring is the right answer: you are a commercial sub with a steady roster of creditworthy GCs, consistent approved pay apps, and a volume problem rather than a credit problem. When it is not: your gap is mobilization — money spent before anything is billable. Factoring cannot advance against an invoice that does not exist yet. That is a Drawline.
The Contractor Standard
Our published minimums. No login, no form, no phone call to find out.
| Requirement | Jobsite Funding |
|---|---|
| Minimum credit score | None for working capital, the Drawline, or invoice factoring. We underwrite cash flow. 600+ for equipment financing. 650+ for SBA and bank term loans. |
| Time in business | 6 months |
| Revenue | $180,000 in trailing-12-month business deposits. Not a monthly minimum. |
| Slow months | Up to 2 months under $5,000 in your last 12 — no penalty, no explanation required. |
| Bank statements | 6 months. We read 6, not 3, because 3 months of a contractor's statements is a season, not a business. |
| Also counts as revenue | Approved pay applications, signed contracts with a schedule of values, and retainage receivable. Money you have earned but not yet been paid. |
| Funding range | $10,000 to $2,000,000 underwritten in-house. Up to $10,000,000 through our bank and SBA partners. |
| Time to funding | Same business day on complete files received before 11:00 AM ET. 24 hours is typical. |
| Contract length | 2 pages. |
| Early payoff | Discount of up to 30% off the remaining balance. No prepayment penalty on any in-house product, ever. |
| Collateral | None required for working capital or the Drawline. Equipment financing is secured by the equipment. |
| Personal guarantee | Yes, on in-house products. Standard for the industry and we are not going to pretend otherwise. |
| License | Active state or local trade license where your work requires one. |
| Business type | US business with a US business bank account and an EIN. Sole proprietor, LLC, S-corp, C-corp, partnership — all eligible. |
| Where we lend | All 50 states. |
| Cost | Working capital: a fixed total cost, disclosed in dollars in the agreement before you sign, over 3 to 18 months. Drawline: 1.8% to 4% per 30 days on the drawn balance only. Equipment: 7.9% to 24.9% APR, 24 to 72 months. |
| What it costs to apply | $0. Soft credit pull. No impact to your personal credit score. |
What we will decline: businesses under 6 months old, businesses with 3 or more open advances already in place, federal or state tax liens without a payment plan, and any applicant with an open bankruptcy. We will tell you on the phone, the same day, and we will tell you why.
Off-Season Step-Down: name up to 4 slow months at application and payments in those months are 40% of the in-season payment, with the deferred principal re-amortized across the in-season months. It is written into the contract at origination, not negotiated after you miss. Available on working capital and the Drawline.
Criteria last reviewed: 21 October 2026
Seasonal and project-lumpy revenue. We gate on $180,000 of trailing-12-month deposits rather than a 3-month average, we allow up to 2 months under $5,000 in that window with no explanation required, and we size the offer off your 3 strongest consecutive months. Off-Season Step-Down drops your payment to 40% in up to 4 months you name at application, written into the contract at origination.
Keep reading: the Drawline · working capital · funding for general contractors · retainage explained · all six products
Construction factoring, answered
- How much does construction invoice factoring cost?
- 1.5% to 5% per invoice, tiered by monthly factored volume and the credit quality of the GCs you bill. Subs factoring under $75,000 a month sit at the top of that range; contractors above $1,000,000 a month sit at the bottom.
- How much of my pay application will be advanced?
- 70% to 85% of the non-retained portion. Retainage is carved out before the advance rate is applied, so on a $60,000 billing with 10% retainage the factorable base is $54,000.
- Will my general contractor know I am factoring?
- Yes. Factoring requires a notice of assignment to the party that owes the money. If that is a problem on your jobs, the Drawline is cash-flow-based and your GC is never contacted.
- How long does setup take?
- 3 to 7 business days for account setup, GC credit checks and the notice of assignment. After that, each advance funds in 24 to 48 hours.
- Can I factor retainage?
- Not under standard factoring. Some partners offer a separate retainage advance at 60%–75% of the retainage balance for a 2%–4% fee, usually only at or near substantial completion with a documented release schedule.
- Do I have to factor every invoice?
- That depends on the partner. Spot and selective-invoice programs exist; whole-ledger programs usually price lower. We will tell you which structure a given partner is offering before you sign.
- What credit score do I need to factor construction invoices?
- None. Factoring is underwritten on your customer's credit, not yours — the factor is buying the GC's obligation to pay. Your lien position, your contract terms and your billing accuracy matter far more than your FICO.
Your billing is approved. Your money should be too.
$0 to apply · Soft credit pull · A person calls you the same business day