ALAMO CONTRACTING SOLUTIONS
Working Capital for Subcontractors
Advance funds against your earned receivables without waiting on GC pay apps. Keep crews working and materials moving — on your schedule, not theirs.
Construction invoice factoring — also called construction factoring or receivable factoring — is the process of converting your outstanding invoices or contract receivables into immediate cash. Instead of waiting 30 to 90 days for a general contractor to process payment, you sell that receivable to a financing company and receive funds now.
In construction, traditional factoring is adapted to fit the structure of subcontracts and pay applications. At Alamo ACS, we use a Receivable Purchase Agreement (RPA) — a structure purpose-built for construction projects where payment is milestone-based rather than tied to a single invoice.
The result is the same: you get paid now. We handle collection from the GC.
Most invoice factoring companies are built for businesses that issue invoices after the work is done. Construction doesn't work that way. You mobilize upfront, buy materials before you're paid, and submit pay applications at intervals throughout a multi-month project.
Our RPA structure accounts for this. Rather than factoring a single invoice, we purchase the entire receivable tied to your subcontract and advance funds as you hit verified milestones or on a bi-weekly basis. You're not waiting to finish a phase before you see money — you're getting funded as you work.
| Factor | Construction Factoring (RPA) | Bank Loan |
|---|---|---|
| Based on | Your contract value | Your credit history |
| Debt on books | No | Yes |
| Repayment required | No | Yes |
| Decision speed | Days | Weeks to months |
| Collection risk | We take it | You keep it |
| Personal guarantee | Not required | Usually required |
Does the GC have to agree to factoring? No. We notify the GC that payment has been assigned to Alamo ACS — that is a legal notice, not a request for approval. Most GCs are familiar with receivable assignments and have no issue with them.
Will the GC think I'm in financial trouble? Securing project financing signals to a GC that you are backed and prepared, not that you're struggling. A funded sub is more likely to perform on schedule and less likely to walk off a job over cash flow issues.
What if the GC is slow to pay? That becomes our problem, not yours. Once we purchase your receivable, collection is our responsibility.