Florida Construction Subcontractor Factoring: Progress Invoices vs. Retainage

Construction subcontractors can complete measurable work long before the corresponding payment arrives. A documented progress invoice may provide a basis for a factoring review, but a pay application is not automatically an approved receivable. Retainage, disputed quantities, unresolved change orders, and payment conditions affect whether an amount is currently due and assignable. QuickInvoiceFactoring.com is a matching service that connects businesses with factoring providers; it does not directly lend or guarantee funding.

Distinguish approved work from withheld amounts

Start with the subcontract and the project’s billing calendar. A progress invoice should identify the completed scope, period, approved schedule-of-values lines, and any required backup. If a general contractor has not approved the application, or if the amount depends on a future inspection, milestone, or change-order authorization, disclose that status. Retainage withheld until later completion or closeout is different from the currently payable portion of an approved progress invoice. Do not represent either unperformed work or a pending application as an accepted invoice.

The Florida Senate’s 2025 version of section 715.12, the Construction Contract Prompt Payment Law, applies to specified written real-property improvement contracts for which a construction lien is authorized under chapter 713 and addresses payment conditions in the contract chain. It is not a blanket promise of a payment date or that retainage qualifies for factoring. Project facts and contract language matter; seek legal advice about rights or deadlines.

Prepare a project-specific receivable file

For each proposed invoice, gather:

• Executed subcontract and incorporated prime-contract terms that govern billing, approval, retainage, offsets, assignment, and payment.
• Approved schedule of values, pay application, current continuation sheet, and the billing period covered.
• Architect, owner, construction manager, or general-contractor approval status and any required inspection or delivery sign-off.
• Daily reports, quantity records, signed tickets, certified payroll or other project-required backup, and photographs where relevant.
• Change orders with signatures and approval; isolate pending changes rather than folding them into approved work.
• Conditional or unconditional lien waivers and releases only in the exact form and sequence required by the project and applicable law; obtain counsel’s review when uncertain.
• A/R aging separating approved amounts, disputed amounts, retainage, and work not yet billed; include prior payment applications and remittance details.

Check that the named invoice debtor is the party obligated to pay under your contract. “Paid when paid” clauses, backcharges, setoffs, joint checks, bonds, or lender controls can affect collection. A provider may ask for notices or waivers; understand a release before signing.

Questions to ask a factor

Ask whether the provider considers construction progress billings and what approval evidence it requires. Does it exclude retainage or wait for owner certification? How does it handle pay-when-paid terms, change orders, joint checks, waivers, public projects, and disputed quantities? Ask about ledger requirements, minimum volume, notice, recourse, reserves, guarantees, pricing, and termination.

Also ask how lien rights and existing security interests are treated, and whether the factor expects counsel to review assignment and waiver forms. A receivables assignment is not a substitute for construction-law compliance. The lender or factor’s review does not determine whether a lien notice, claim, or payment deadline has been satisfied.

Keep retainage visible, not hidden

Reconcile the approved amount to the subcontract’s billing schedule, then list retainage and pending work separately. Ask the general contractor when each amount becomes payable and what closeout evidence is required. A clear split between accepted progress billings, unresolved applications, retainage, and unbilled work helps a provider assess collectible invoices without treating future project value as current cash.