Construction Accounts Receivable Financing
Contractors: Turn
Invoices Into
Immediate Cash
Stop Waiting 30, 60, 90, 120 Days to Get Paid
What Is Invoice Factoring?
A simple, fast way to convert your unpaid invoices into working capital — without taking on traditional business debt.
Turn Unpaid Invoices Into Immediate Working Capital
Invoice factoring is a type of business financing where a company sells its unpaid invoices to a factoring company at a small discount in exchange for immediate cash.
Instead of waiting for customers to pay their invoices — which in construction can take months — businesses receive a cash advance based on the invoice value. This keeps payroll funded, materials purchased, and projects moving forward without disruption.
Because factoring involves selling an asset (accounts receivable), it does not create traditional business debt like a conventional loan.
Prime Pinnacle works exclusively with contractors in the real estate industry — helping homeowners and investors complete rehabilitation projects with no out-of-pocket costs. Contractors build the factoring cost into the invoice price, which is paid by the homeowner or investor. There are no fees or expenses associated with selling invoices to Prime Pinnacle.
How It Works
The invoice factoring process is simple and designed to improve cash flow quickly.
Deliver Products or Services
Your company provides goods or services to a business customer and issues an invoice with payment terms.
Submit the Invoice
You send the unpaid invoice to Prime Pinnacle. We review and process it quickly so funding can begin.
Receive Your Advance
Prime Pinnacle advances up to 100% of the invoice value, often within a few business days of submission.
Customer Pays at Closing
Your customer pays the invoice directly to Prime Pinnacle at closing or when refinancing the home.
Receive the Balance
Once the invoice is paid, Prime Pinnacle releases the remaining balance minus the factoring fee.
Benefits of Invoice Factoring
Invoice factoring offers several advantages for contractors and growing businesses.
Faster Access to Cash
Receive funding within days instead of waiting weeks or months for customer payments. Keep projects moving and payroll funded without disruption.
No New Debt
Factoring is not a traditional loan. You're converting accounts receivable into cash — not taking on additional business debt that affects your balance sheet.
Flexible Funding
Funding grows automatically as your invoice volume increases. The more work you complete, the more working capital you can access.
Easier Approval
Approval is based primarily on your customer's creditworthiness, not just your company's credit history. More accessible than traditional financing.
Outsourced Collections
Prime Pinnacle handles invoice collections, reducing your administrative workload so you can focus on completing projects and growing your business.
Construction-Specific
Designed exclusively for contractors in the real estate industry. We understand long pay cycles, AIA applications, and the unique cash flow challenges of construction work.
Invoice Factoring vs. Traditional Loans
For many construction businesses, factoring provides faster and more flexible financing than conventional options.
| Feature | Invoice Factoring | Bank Loan |
|---|---|---|
| Funding Speed | 24–48 hours | Weeks or months |
| Creates Debt | No new debt | Creates business debt |
| Approval Basis | Customer's credit | Business credit history |
| Collateral Required | Invoices only | Assets often required |
| Scalability | Grows with invoice volume | Fixed loan amount |
| Out-of-Pocket Costs | None to contractor | Fees, interest, closing costs |
A Simple Example
Here's how factoring works in a real-world scenario.
Frequently Asked Questions
Ready to Get Paid Faster?
If your business is waiting weeks or months for payment, invoice factoring can provide the working capital you need to grow. Fast approvals, competitive rates, and flexible programs designed for contractors.