5 Best Construction Factoring Companies for 2023

Clarify Capital is our best overall factoring company for construction because of its low rates and flexible financing terms. Depending on the details of your business and your loan application, you could qualify for rates as low as 0.5% for every 30-day period. It is also the only company in our guide that offers 100% financing, with funding that can be issued in as little as 24 hours.

An advantage of working with Clarify Capital is the fact that it’s a broker with more than 75 lenders in its network. Having this many options means you’re more likely to be paired with a factoring company that has a low rate.

Besides that, the number of lenders the broker has partnered with can also improve your chances of getting approved. In the event that you’re unsure which provider to choose, you can work with a Clarify Capital specialist to walk you through the pros and cons of each of your options.

One downside to this provider is its high annual revenue requirement. You’ll need at least $300,000 to qualify, which is the second highest among the providers we’ve selected. However, Clarify Capital can work with startups, as it only needs a three-month history of invoices.

To learn more or to submit an application, you can visit the Clarify Capital website. There, you can complete an application in less than 2 minutes.

With 1st Commercial Credit, funding requests for less than $350,000 can be approved with no requirement for financial documents. It also provides competitive rates and loan terms, making it a good option if you’re looking for an easy approval and funding process.

It commonly works with appraisers, asphalt companies, cable companies, carpenters, and electrical contractors. Even if you don’t fall into one of those categories, it can most likely still work with you if you are a construction-related firm.

It offers the second-highest advance rate on our list, as you can get up to 95% of your invoices funded. Financing amounts are available from $10,000 to $10 million, with repayment terms that typically go up to 60 days. While funding can be done in as little as three days, it may take slightly longer depending on the details of your specific loan application.

To learn more, you can visit the 1st Commercial Credit website. There, you’ll find the company’s toll-free number available 24/7. You can also submit an online request for a quote.

nFusion is one of two companies in this guide that has no minimum revenue requirement. While Capital Plus also shares this same requirement, nFusion’s rates typically are more competitive. For this reason, we’ve selected it as the best provider for low-revenue businesses.

It does not publicly list its rates. However, most businesses can expect rates that start as low as around 1.5% for every 30-day period. You can get an advance on up to 80% of your invoice amounts, with a limit of $10 million in funding and repayment terms of up to 90 days.

Other services offered by nFusion include:

• Finance reporting
• Customer credit review
• Project budgeting and tracking
• Compliance services
• Invoicing and payables management

To learn more, you can visit the nFusion website to apply online or call the company’s toll-free number.

Capital Plus is the only provider listed in this guide with no requirements for revenue and time in business. For this reason, it can be a great option for startups that may not yet have a history of earnings.

It is a direct lender with in-house underwriters. While this may not give you multiple options as you could get with a broker, one advantage is that loan decisions can be made faster and with more flexibility. As a result, Capital Plus can issue funding for less common and difficult scenarios. Some examples include funding bonded jobs, progress billing, and other distressed situations.

Funds obtained from this provider can be used for any business purpose. This includes hiring new employees, paying contractors or suppliers, and funding new projects. Construction factoring with Capital Plus requires no long-term contracts, and there are also no monthly minimums.

To apply or get a quote, you’ll need to complete an online form requesting a callback. You can also call the company’s toll-free number for any questions.

Out of the providers we’ve selected, TCI Business Capital is the best direct lender to choose if you’re looking to get funding quickly. One advantage of working with a provider like TCI Business Capital instead of a broker is that it has a greater ability to make loan decisions, rather than needing to rely on an outside lender.

TCI Business Capital can also issue funding as quickly as 24 hours. While it can work with startups, one drawback is that it has the highest revenue requirement on our list. To be considered for funding, you’ll need at least $600,000 in annual revenue.

The provider’s rates and fees start at around 2% per 30 days. Although it’s not the lowest in our guide, you could save money in the long term because companies approved for funding do not have to sign any long-term contracts. As a result, it’s also a good option for businesses that may only have factoring needs for short periods throughout the year.

To start the process, you can submit an online application or call the company’s toll-free number.

Compared to traditional loans, factoring can be easier to get because there is a larger emphasis on the creditworthiness of your customers rather than that of your own business. Many factoring companies are also willing to work with startups, as well as those with lower revenue.

You should consider a factoring company’s qualification requirements, financing terms, and customer ratings. The best loan for your business is one you can get approved for with terms that best fit your needs. Customer reviews and ratings can also provide insight into the level of customer service you can expect.

The lowest fees are typically between 1% and 3% for every 30-day period—but pay attention to what your long-term fees will be. This is because some providers may require a contract to factor for a minimum length of time. If you do not need recurring needs for factoring, you could end up paying more fees by agreeing to one of these contracts.