Construction invoice factoring advances 80-90% of approved receivables within 24 hours, with the balance (minus a 1-5% fee) released when your general contractor pays. Unlike traditional loans, approval is based on your GC's creditworthiness — not yours. This means newer contractors with strong contracts can access capital immediately without adding debt to their balance sheet.
Written by Ed Freeman, Capital Advisory — PeerSense
Construction contractors waiting 30-90 days for GC payments? Get 80-90% of your invoice value funded the same day. No debt, no equity — just your receivables working for you.
Minimum 30-35% equity required. Subcontractors and GCs with $50K+ monthly receivables from creditworthy general contractors or project owners.
LTV Target
80-90% advance rate
Est. Rate Range
1% - 5% per invoice
Term
Per invoice (30-90 day terms)
Recourse
Non-recourse available
DSCR
N/A — based on debtor credit
Closing Speed
Same day — funded in 24 hours
Min Loan Size
$10K
Loan Products
Invoice Factoring, Accounts Receivable Financing
Use construction factoring when you have signed contracts or completed work with approved invoices but cannot wait 30-90 days for payment. This is especially valuable when you need to cover payroll, buy materials for the next job, or fund mobilization costs. If your GCs are creditworthy but slow-paying, factoring converts your receivables into immediate cash without the underwriting delays of traditional bank loans.
If you prefer a revolving credit line and have 2+ years of financials
Learn moreIf you need to finance specific equipment rather than cover cash flow gaps
Learn moreIf you want longer-term working capital and can wait 30-60 days for SBA approval
Learn morePeerSense pre-underwrites every deal before presenting it to our institutional capital sources. With 500+ lender relationships and live market rate intelligence, we match your construction services deal with the right capital source — right now.
No upfront retainer · Fee at closing only · Complimentary initial consultation
Written by Ed Freeman, Capital Advisory — PeerSense. Updated March 2026.
Disclaimer: The information on this page is provided for educational purposes only and does not constitute financial, legal, or investment advice. Rates, terms, and availability are subject to change based on market conditions, property characteristics, and borrower qualifications. The rate ranges cited reflect approximate market pricing as of March 2026 and may not reflect current conditions at the time of reading. PeerSense is a capital advisory firm, not a lender. We do not originate, fund, or service loans. All financing is provided by third-party lenders subject to their own underwriting criteria and approval processes. Borrowers should consult with qualified financial and legal professionals before making any financing decisions.