What is retainage?
Retainage: A percentage of each invoice the customer holds back until final acceptance.
How it works
Typical on capital equipment builds and construction-adjacent manufacturing—often 5–10% held for 30–180 days after delivery. Factors usually do not advance against retainage; you finance it separately or wait for release.
Where you will run into it
Retainage comes up most often in purchase order financing conversations. See how purchase order financing works, including real cost ranges and timelines.
Retainage questions
A percentage of each invoice the customer holds back until final acceptance.
Typical on capital equipment builds and construction-adjacent manufacturing—often 5–10% held for 30–180 days after delivery. Factors usually do not advance against retainage; you finance it separately or wait for release.
Funding Requirements Checklist for US manufacturers
See exactly what underwriters actually look at — for factoring, PO financing, equipment, working capital, ABL, and SBA — before you fill out a single application.
- What documents you need for each program
- Typical time-to-fund by program
- Common disqualifiers worth knowing up front
- How Manufactor Finance is compensated — $0 fees to you
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