Construction factoring: get paid on progress billings while the GC takes 60 to 120 days.
Crews, materials and equipment are paid now. General contractors often pay subs in 60 to 120 days. Construction factoring turns approved invoices and progress billings into cash, and the approval looks mainly at the GC's credit, not yours. At 1st Commercial Credit it's for contractors with at least a year in business and $100,000 a month in revenue from more than one client.
Daniel Chirino · Business Development Officer, 1st Commercial Credit
Updated: October 29, 2026
- Since 20021st Commercial Credit
- 3,800+clients funded
- $5B+funded
- Direct fundernot a broker
- Every costin writing before you sign
1st Commercial Credit figures from its website, read October 29, 2026.
Why contractors run short of cash
- Payroll and payroll taxes are due every week, long before the GC pays.
- Materials and equipment are bought upfront for each job.
- A bigger job means more cash during each progress billing cycle.
- Your own subs and suppliers want to be paid on time.
The result is the same in every trade: profitable contractors turn down bigger jobs because their money is sitting in receivables. And many general contractors prefer subs that are financially backed, because unpaid suppliers can file liens on the project.
How construction factoring works
Complete the work and bill
Finish the work or the progress stage, and invoice the GC or the owner with the contract or purchase order behind it.
Get the advance
1st Commercial Credit verifies the invoice and advances most of its value, often within 24 hours. Each progress billing stage can be funded as you deliver it.
The GC pays 1st Commercial Credit
On its normal terms. You get the rest, minus the fee, and keep paying your subs and suppliers as the job moves forward.
What 1st Commercial Credit offers contractors
The program
- Pay-when-paid clauses are accepted.
- Progress billings funded stage by stage.
- Experience with receivables that can carry supplier liens.
- No financial statements up to $350,000. Setup in 3 to 5 days.
- For general contractors, lines of credit through Vendor Pay Express, its affiliate.
- The cost depends on your volume, how fast the GCs pay and their credit, and it's confirmed in writing.
What you'll need
- At least 1 year in business and $100,000 a month in revenue from more than one client.
- A valid contract or purchase order.
- Completed work or approved progress billing.
- Creditworthy general contractors or clients.
- Clean, verifiable invoices and basic business documents.
It works for subcontractors (electrical, plumbing, HVAC, concrete and asphalt, carpentry, roofing, drywall, tile, painting, welding, demolition and environmental), general contractors, civil and infrastructure companies, utility and fiber contractors, inspectors and surveyors, material suppliers that sell on terms and construction staffing agencies.
Source: 1st Commercial Credit's construction contractors page, read October 29, 2026. Terms are confirmed in writing before you sign.
When construction factoring is not the answer
- You're under a year in business or under $100,000 a month, or you work for a single client.
- The work isn't finished or the progress billing isn't approved yet.
- You build for homeowners. Factoring works on invoices to businesses or government agencies.
- The problem is margin, not timing. If a job loses money, getting paid faster only loses it faster.
Where contractors meet me
You can find me at events of the Construction Association of South Florida (CASF), the association of the region's commercial construction industry. If you're there, say hi. If not, the form below works the same: tell me who your general contractors are and how long they take to pay.
Questions contractors ask me
My subcontract has a pay-when-paid clause. Is that a problem?
Not at 1st Commercial Credit: pay-when-paid clauses are accepted. Bring the contract to the first call so the terms can be read with you.
Can you fund each progress billing?
Yes. As you deliver each billing stage, the invoice can be funded, so you keep paying subs and suppliers while the job moves forward.
I work on public projects. Does that change anything?
1st Commercial Credit also funds contractors on local, state and federal government projects, including invoices to prime contractors. See factoring for government contractors.
Do I need good credit?
The decision rests mainly on the credit of the general contractors you work for and the quality of your invoices.
Who are your general contractors?
Tell me who you build for, how long they take to pay and how you bill. I'll tell you if factoring makes sense for your company.
Also read: how invoice factoring works · telecom and fiber · staffing