Construction Factoring Software
Zolvo automates the servicing and back-office operations for lenders factoring construction and subcontractor receivables. The work that grows fastest in construction factoring is not origination, it is the post-funding grind: verifying progress-billing invoices and pay applications, reconciling general-contractor and owner payments, chasing aged and held-back balances, and watching retainage and concentration across the book. Zolvo runs that workflow on top of the systems you already use (FactorSoft, LoanPro, QuickBooks, and bank feeds via Plaid), so your team scales volume without scaling headcount. Zolvo is SOC 2 Type II, GDPR aligned, AES-256 encrypted, with strict tenant isolation. It does not originate, underwrite, or act as your system of record.
Why construction receivables are harder to service
Construction factoring funds against progress billings rather than ordinary one-time invoices. A subcontractor bills as work is completed, and each pay application is approved by a general contractor or owner before funds release. That approval step, plus the supporting documentation behind every billing, is where servicing labor accumulates. Retainage stretches the collection timeline well past the work itself, so balances age and need steady follow-up long after the draw is funded.
Progress-billing verification
Before you advance, Zolvo confirms each progress-billing invoice and pay application against its supporting documents, approved amount, and terms using multi-channel outreach by phone, email, WhatsApp, and AI voice. Duplicate-pledging and fraud detection flag the same billing financed twice. This is the same invoice verification engine Zolvo runs across receivables-based lending, tuned to the way construction billings are approved.
Reconciliation and cash application
General contractors and owners pay in batches, release net of holdbacks, and remit with references that rarely tie cleanly to one billing. Zolvo parses bank deposits and applies each payment back to the right progress billing with confidence scoring, so your team reviews only the exceptions. Accurate payment matching and reconciliation keeps advance rates and outstanding balances honest across every funded account.
Collections and monitoring
Scheduled reminders over email, WhatsApp, and SMS keep follow-up consistent on aged and held-back balances, with an AI assistant for routine status questions and rule-based escalation to your team. Collections automation means no account ages quietly. Portfolio monitoring tracks retainage, concentration by general contractor and project, aging, advance rates, and covenants, surfacing drift before it becomes a loss.
How construction factoring fits the broader Zolvo platform
Construction receivables sit alongside the other receivables-based verticals Zolvo serves. The same four modules power factoring desks and asset-based lines, applied to the documents and counterparties specific to each book. If you also run asset-based facilities, the same engine extends to ABL servicing. Most construction factors go live in about two weeks, augmenting existing systems rather than replacing them.
| Operational task | Manual today | With Zolvo |
|---|
| Progress-billing verification | Manual calls and document review per pay application | Multi-channel confirmation with duplicate and fraud flags |
| Reconciliation | Spreadsheet matching of batched, held-back releases | Confidence-scored cash application, exception review only |
| Collections | Ad hoc chasing of aged and retained balances | Scheduled reminders with AI assistant and escalation |
| Monitoring | Periodic manual rollups of retainage and concentration | Continuous tracking with on-demand funder reports |
Frequently asked questions
Does Zolvo replace my factoring platform?
No. Zolvo augments the systems you already run, including FactorSoft, LoanPro, QuickBooks, and bank feeds via Plaid. It automates post-funding servicing and does not originate, underwrite, or act as your system of record.
Can Zolvo verify progress billings and pay applications?
Yes. Because construction factoring funds against real, approved receivables, Zolvo confirms each progress-billing invoice against its supporting documents, approved amount, and terms before you advance, and flags duplicate-pledging and fraud signals.
How does Zolvo handle retainage and held-back amounts?
Zolvo reconciles partial releases back to the right billing and tracks retainage, aging, and concentration across the portfolio, so held-back balances stay visible and get consistent collections follow-up. To see it on your book, get in touch.