invoice factoring for construction & contractors
Invoice Factoring for Construction & Contractors businesses. Built for construction & contractors cash flow.
Invoice factoring converts your unpaid B2B receivables into immediate cash. ICG advances 85–95% of the invoice amount on submission, you receive the remainder (less a small factoring cost) when your client pays.
- Max funding
- $2M facility
- Term
- Per-invoice, ongoing facility
- Time to fund
- Same-day after setup
- Min FICO
- 500+
The short answer
Is Factoring the right fit for Construction & Contractors businesses?
Turn completed project invoices into immediate cash while clients pay on their terms.
Last updated 2026-06-24
Why this fit
Common cash-flow gaps in construction & contractors. Invoice Factoring maps to the ones below.
These are the underwriting realities and operational pressures we see most often in this industry.
Payroll Before Payment
Your crew needs to get paid every Friday. Your client pays net-60. That gap is where businesses fail, unless you have the right capital partner.
Material Cost Upfront
Lumber, concrete, steel, suppliers want payment on delivery. You need capital to buy materials before the project generates revenue.
Bid Bond Requirements
Winning larger contracts requires proof of financial capacity. Working capital on hand makes the difference between bidding and sitting out.
Representative scenario
What a typical construction & contractors invoice factoring looks like. Numbers below are illustrative.
Your actual offer depends on your bank statement history, time in business, credit profile, and existing debt.
Rates vary by applicant. Representative example only.
Seasonality
When in the year construction & contractors businesses tend to need this capital. Time the draw, not just the deal.
Winter slowdown (Dec–Feb)
Most outdoor trades see a 40–60% revenue drop during the December–February window. Plan a revolving line of credit or bridge capital in Q3 to cover payroll and equipment carrying costs through winter.
Spring ramp-up (Mar–May)
Project backlog jumps as weather improves. This is the period when contractors take on the most capital risk: material deposits, subcontractor down-payments, and expanded crews all hit before the first progress payment arrives.
Peak construction (Jun–Oct)
Five months of peak throughput generate 60–70% of annual revenue. Invoice factoring during this window keeps cash flowing when clients are on net-60.
Year-end close-out (Nov)
Clients rush to close projects before year-end. Short-term funding can bridge the last 30–45 days of the fiscal year when receivables are highest.
Qualification
What we look for in construction & contractors files. Underwriting, in plain language.
- Minimum 6 months operating as a licensed contractor
- $15,000+ monthly revenue
- 500+ personal credit score
- Active business bank account
- Valid contractor license (state-dependent)
Other ICG products for construction & contractors
Not the right fit? Here is what else works in your industry.
Common questions
Invoice Factoring for construction & contractors. Honest answers, no fine print games.
QDoes ICG fund sub-contractors or only GCs?
Both. Sub-contractors often qualify faster because their invoicing is more predictable. GCs with net-30/60 client terms are ideal candidates for invoice factoring.
QCan I use funding for a bid bond?
Yes. Short-term bridge capital is frequently used to demonstrate working capital on bid bonds. Discuss the exit strategy with your funding specialist during application.
QWhat documents do you need?
Typically 4 months of business bank statements, a signed contract or work order showing committed revenue, and your contractor license number. No tax returns required for the initial review.
QDo you fund union payroll?
Yes. Revenue-based funding is well-suited to weekly union payroll because daily debits align with your labor cash-out cadence.
QHow much of the invoice do I get upfront?
Advance rates are typically 85–95% of the invoice face value. The exact rate depends on your industry, client credit quality, and invoice aging terms. The reserve is released when your client pays.
QIs this recourse or non-recourse factoring?
Both options are available. Non-recourse factoring is slightly more expensive but ICG absorbs the loss if a qualifying client defaults on payment. Recourse factoring is cheaper but you repurchase unpaid invoices after an aging threshold.
QDo my clients know I'm factoring?
In notification factoring (standard), payments are redirected to a lockbox in ICG's name. Non-notification arrangements are available for established clients on request.
Invoice Factoring for other industries
Where else this works. One product, many verticals.
Ready when you are
Ready to fund your construction & contractors business? Same-day after setup to fund.
Quick application. Soft credit pull only. Real human review.