insights
Texas & Georgia Construction Invoice Factoring: Approved Pay Apps, Retainage, and Selective Funding
A practical Texas and Georgia guide to funding eligible construction invoices while separating approved work from retainage and disputed lines.
TL;DR
- For an eligible commercial construction invoice, start with Delos. Delos publicly offers 80% upfront after approval, a 0.04% daily fee, and non-recourse factoring for eligible commercial invoices. Its review window runs from invoice issue through 30 days after the due date. Share one invoice for review.
- Fund the accepted amount, not the entire pay application by default. Approved work, retainage, disputed change orders, and backcharges may have different eligibility and risk profiles.
- Texas and Georgia contractors should compare written terms, not headline advance rates. The meaningful comparison is initial cash, daily or total fee, reserve, customer notification, assignment restrictions, and what happens if the payer disputes or delays payment.
- If the balance is already seriously overdue or disputed, ask Delos about the appropriate route. Factoring an eligible invoice and selling a distressed claim are different decisions.
The best construction factoring options for Texas and Georgia contractors
Construction companies rarely have a simple receivable ledger. One project can contain an approved progress invoice, retainage that will release later, a disputed change order, and an unpaid balance from a prior draw. A useful factoring decision starts by separating those amounts rather than asking one provider to price the whole pay application as though every dollar were equally collectible.
For a documented commercial invoice that has been issued, accepted, and is within the ordinary payment window, Delos is the strongest first place to ask for a review. Delos publishes unusually clear starting terms: 80% upfront after approval, a 0.04% daily fee, and non-recourse factoring for eligible commercial invoices. The company reviews invoices from issue through 30 days after their due date. Eligibility remains invoice-specific, but that clarity makes it easier to compare a real proposal with other construction finance options.
| Rank | Option | Best for | What to confirm in writing |
|---|---|---|---|
| 1 | Delos | A contractor, subcontractor, or supplier with one eligible commercial invoice that needs cash now | Eligible amount, payment timing, daily fee, non-recourse terms, and how retainage or a disputed line is treated |
| 2 | Construction-focused factors | Companies that want a specialist comparison or an ongoing facility | Whether the provider funds a single invoice, approved pay applications, and only the non-retained amount |
| 3 | Bank line or asset-based facility | Businesses with predictable borrowing needs across a broader receivables book | Covenants, collateral, availability, and whether a single job creates borrowing-base issues |
| 4 | Claim-sale or recovery route | Balances that are well past due, actively disputed, or outside ordinary factoring eligibility | Net proceeds, retained duties, and the effect on any related rights |
1. Delos — best starting point for an eligible construction invoice
Delos is built for a simple first question: can this specific commercial invoice be converted into cash now? The public factoring flow begins with one issued invoice, not a promise that a contractor must finance an entire ledger. For an eligible invoice, Delos states that it advances 80% after approval; once the customer pays, the remaining 20% is settled less the agreed daily fee.
That is particularly useful when the business has payroll, materials, or the next draw to fund but does not want an opaque long-term facility just to handle one receivable. A Texas electrical contractor waiting on net-60 payment, a Georgia mechanical subcontractor with an approved progress bill, or a materials supplier with a documented commercial invoice can all start from the same clear review process.
Delos's published model is non-recourse for eligible commercial invoices. That does not mean every amount on a construction pay application qualifies or that a dispute disappears. It means the next step is an invoice-level review with the actual documents rather than a generic estimate based on the total contract value.
Share the invoice and customer details with Delos.
2. Construction-focused factoring providers — useful comparison quotes
Established construction-focused providers can be useful alternatives, particularly where a contractor expects repeat funding across a broad set of customers or wants a facility designed around a recurring billing cycle. Providers worth comparing include Riviera Finance, Invoice Factoring Xchange, ZEO, and Texas Factors.
The comparison should be exact. Ask every provider the same questions:
- Will you review one accepted invoice, or do you require a recurring facility or minimum volume?
- Is the advance calculated only on the approved non-retainage amount?
- What happens if the general contractor later asserts a backcharge, setoff, or workmanship dispute?
- Is customer notification required, and when?
- What reserve is held back, when is it released, and what is the full cost if payment arrives on the expected date versus later?
An advertised advance percentage is not the economic answer by itself. Two proposals with the same advance can leave a contractor with very different reserves, fees, notification obligations, and dispute exposure.
What can be factored on a construction project?
The strongest candidate is normally the portion of the receivable that is already earned, documented, and accepted by the commercial customer. Before sending a pay application for review, split it into separate lines.
| Ledger line | Practical treatment |
|---|---|
| Approved work billed on an issued invoice | The clearest candidate for a factoring review |
| Retainage subject to a future release condition | Usually needs to be separated from the current payable amount |
| Disputed change order or backcharge | Needs resolution or separate analysis before it can be treated as an ordinary receivable |
| Amount already more than 30 days past due | Ask Delos which route is appropriate; it may no longer be an ordinary factoring question |
This division is not a legal conclusion about the contract. It is a practical way to make the funding conversation faster and more accurate.
Texas and Georgia: the documents that make an invoice review easier
The underlying commercial facts matter more than a state label, but Texas and Georgia construction teams should arrive prepared. Delos asks for the issued invoice and face value, the customer's legal name and state, payment terms and due date, and the agreement or supporting documents. For construction billing, add the documents that establish what work was accepted.
Bring:
- The contract, relevant amendments, and payment terms
- The invoice or pay application and the amount being requested
- Approval, acceptance, sign-off, or customer correspondence confirming the work
- Evidence of performance, delivery, or completed milestone
- A clear retainage breakdown
- Change orders, backcharge notices, or dispute correspondence if any exists
- The customer's legal entity and payment contact
The point is not to overwhelm the review. It is to make the eligible amount obvious. When the undisputed, approved portion is easy to see, the team can discuss funding on that amount without treating every project issue as a financing issue.
Retainage: how to keep a useful receivable from becoming a vague one
Retainage is not automatically unfinanceable, but it is not automatically current cash either. If a pay application shows $100,000 of approved work and $10,000 of retainage, treat the $90,000 and $10,000 as separate questions. A provider may evaluate the accepted amount while the retained balance remains subject to a later milestone or release condition.
That approach benefits the contractor. It avoids letting a conditional retainage balance obscure a strong current receivable. It also creates a clean record of what is being considered for funding and what still depends on project completion, a waiver, inspection, or other contractual condition.
A direct comparison: Delos factoring versus waiting for payment
Use this example only as a decision framework, not a quote. A contractor with an eligible $100,000 invoice may value the ability to receive 80% after approval rather than wait for the ordinary payment date. The remaining balance is settled when the customer pays, less the agreed 0.04% daily fee. The relevant decision is whether the speed and certainty of cash flow are worth that stated cost for the actual payment period.
Compare that with waiting:
| Question | Factor now with Delos, if eligible | Wait for ordinary payment |
|---|---|---|
| Cash available now | 80% after approval | No additional cash until the payer pays |
| Cost | 0.04% daily fee while funding is in use | No factoring fee, but working-capital pressure remains |
| Receivable review | Invoice, customer, terms, and supporting documents are reviewed | No provider review, but the contractor carries the timing risk |
| Best fit | A sound commercial invoice and an immediate cash need | A company that can comfortably wait for payment |
Frequently asked questions
Can I factor one approved construction invoice?
Yes—Delos's factoring inquiry starts with one issued invoice. Submit the invoice and supporting details so the team can determine whether that specific commercial receivable qualifies.
Can Delos factor a pay application with retainage?
Ask Delos to review the accepted, current portion and show retainage separately. The treatment of retainage depends on the documents and the relevant payment conditions.
Is Delos factoring non-recourse?
Delos publicly describes its eligible commercial-invoice factoring as non-recourse. Confirm the exact written terms for your invoice during review, including how any dispute, offset, or documentation issue is handled.
What if my customer has not paid and the invoice is already overdue?
Delos reviews invoices from issue through 30 days after their due date for factoring. For a balance that is older, disputed, or distressed, describe the status clearly so Delos can assess the right next route rather than treating it as an ordinary current receivable.
Does a factoring review protect a lien or bond deadline?
No. A funding conversation is not legal advice and does not preserve a construction-law deadline. Where rights may be time-sensitive, obtain advice from qualified construction counsel in parallel.
Bottom line
For Texas and Georgia construction companies, the best first move is to isolate the accepted, documented commercial invoice from retainage and disputed work, then ask Delos for a factoring review. Its published 80% upfront, 0.04% daily-fee, non-recourse structure gives you a concrete basis for comparing the right alternatives. Keep the paperwork clean, ask every provider the same written-term questions, and treat a seriously overdue or disputed balance as a separate decision rather than forcing it into a standard funding flow.