How factoring works
The job is finished, the invoice is out, and the builder pays in 45 or 60 days. You do not have to wait on it. We buy the invoice and wire you 70% this week, with the balance released when your customer pays — payroll met, next job started, no chasing.
The four steps
Upload the invoice and the signed work order.
We verify the invoice with your customer. That protects you as much as us.
We wire you 70% of the face value, usually within two business days.
When your customer pays, we release the balance, less the discount fee.
70% wired this week. One discount fee, capped.
The fee is 6% of the invoice face for the first thirty days, then 3% for every fifteen days after, and it never passes 24% of face. Most invoices we buy settle inside the first period. We verify the invoice with your customer before we buy it, which is how we keep the clock short for both of us.
A worked example
A $12,000 invoice settled on day 28 — inside the first period, which is where most of them land.
| Your invoice to the builder | $12,000.00 |
|---|---|
| Cash to you this week (70%) | $8,400.00 |
| Discount fee (6% of face, first 30 days) | $720.00 |
| Rest released to you when the builder pays | $2,880.00 |
One balance, not two
If you also owe us on fronted material, what we collect pays that balance down first and the remainder comes to you. One relationship, one number to watch, nothing to reconcile at your end.
If your customer never pays
We chase the debtor, and we are good at it — that is part of what you are buying. These are recourse purchases, so if an invoice is still unpaid at 120 days it returns to you as a balance, net of what we advanced. Send us invoices from customers you trust and this rarely comes up.
The advance rate and fees above are our published schedule applied to one example invoice. Your terms, the fee schedule and the recourse language come to you in writing before you sign.