All 50 states + DC · verified November 12, 2026
Invoice factoring rules by state
The short answer
Invoice factoring is legal in every state, governed by the Uniform Commercial Code. What changes by state: 11 states now require cost disclosures on commercial financing (most reach factoring), plus where UCC liens are filed, how fast state agencies must pay vendors, and the lien deadlines construction factors rely on.
Pick your state
- Disclosure law in effect
- Enacted, not yet in effect
- No disclosure law
Disclosure laws by stateThresholds, effective dates, APR rules and which laws reach factoring. How fast states pay vendorsState agency payment deadlines and late interest, plus the federal rate. Construction lien and prompt payLien deadlines, notices, private prompt pay and bond rules. Disclosure checkerDoes your state's law cover your deal? Two answers, instant result.
Every state at a glance
Filter by name or code. Each row links to that state's full page with sources. Download as CSV or JSON.
| State | Disclosure law | UCC filing office | State agencies pay | Lien deadline |
|---|---|---|---|---|
| Alabama | None | Alabama Secretary of State, Uniform… | Generally 30 days after the vendor… | Generally within 4 months after last… |
| Alaska | None | Alaska Department of Natural Resources,… | By the contract date, or if none, 30 days… | Generally within 120 days after the… |
| Arizona | None | Arizona Secretary of State, Business… | Progress payments within 14 days after an… | Generally within 120 days after completion… |
| Arkansas | None | Arkansas Secretary of State, Business and… | Progress payment requests: 5 working days… | Generally within 120 days after last… |
| California | Yes, Commercial financing offers of… | California Secretary of State, Uniform… | 45 days after receipt of a properly… | Generally within 90 days after completion… |
| Colorado | None | Colorado Secretary of State, Business and… | 45 days after the executive branch… | Generally within 4 months after last… |
| Connecticut | Yes, Sales-based financing of… | Connecticut Office of the Secretary of the… | On the date the contract sets, or if none,… | Generally 90 days after the claimant stops… |
| Delaware | None | Delaware Department of State, Division of… | Interest may be charged if a state agency… | Generally 120 days after completing labor… |
| District of Columbia | None | Office of the Recorder of Deeds (Office of… | The contract payment date, or if none, 30… | Notice of intent recorded in the land… |
| Florida | Yes, Commercial financing… | Florida Secured Transaction Registry (the… | State agencies owe interest if a warrant… | Generally 90 days after final furnishing… |
| Georgia | Yes, Commercial financing… | Clerk of Superior Court in any of… | On construction, generally 15 days after… | Generally 90 days after last furnishing… |
| Hawaii | None | Bureau of Conveyances, Department of Land… | No later than 30 calendar days after… | Application for lien filed in circuit… |
| Idaho | None | UCC Division, Idaho Secretary of State… | 60 calendar days after receipt of the… | Generally 90 days after last furnishing… |
| Illinois | None | Illinois Secretary of State, Department of… | 90 days after receipt of a proper bill or… | Subcontractors generally must serve notice… |
| Indiana | None | Business Services Division, Indiana… | By the date in the contract; if none,… | Generally 90 days after last furnishing… |
| Iowa | None | Iowa Secretary of State (filing office for… | 60 days after receipt of the claim or… | Generally post the lien on the MNLR within… |
| Kansas | Yes, Commercial financing… | Business Services Division, Kansas… | 30 calendar days after receipt of the… | Generally 3 months after last furnishing… |
| Kentucky | None | Kentucky Secretary of State (Frankfort);… | Undisputed amounts within 30 business days… | 6 months after last furnishing, filed with… |
| Louisiana | Yes | Any of the 64 Louisiana parish clerks of… | State agencies owe a penalty if they fail,… | Generally 60 days after a notice of… |
| Maine | None | Maine Secretary of State, Bureau of… | No more than 25 working days after the… | Subcontractors and suppliers must file a… |
| Maryland | None | Maryland State Department of Assessments… | Within 30 days after the payment due date… | File a petition to establish the lien in… |
| Massachusetts | None | Secretary of the Commonwealth,… | On the contract date or, if none, not more… | Record a notice of contract by the… |
| Michigan | None | Michigan Department of State (Secretary of… | Payment mailed within 45 days after the… | Record a claim of lien with the county… |
| Minnesota | None | Office of the Minnesota Secretary of… | State agencies: within 30 days after… | File the lien statement with the county… |
| Mississippi | None | Mississippi Secretary of State, Business… | 45 days after receipt of the invoice and… | Within 90 days after the claimant's last… |
| Missouri | Yes, Transactions of $500,000 or… | Missouri Secretary of State, Uniform… | Generally 30 days after the later of… | Generally within 6 months after the… |
| Montana | None | Montana Secretary of State, Business and… | When due under the contract, or if no date… | Within 90 days after the claimant's final… |
| Nebraska | None | Nebraska Secretary of State, Business… | 45 calendar days after the later of… | Within 120 days after the claimant's final… |
| Nevada | None | Nevada Secretary of State, Commercial… | Public works: progress payments within 30… | Generally within 90 days after the latest… |
| New Hampshire | None | New Hampshire Department of State,… | n/a | The lien lasts 120 days after the claimant… |
| New Jersey | None | New Jersey Department of the Treasury,… | Generally 60 days after the later of… | Within 90 days after last furnishing labor… |
| New Mexico | None | New Mexico Secretary of State, Business… | Agency certifies acceptance or rejection… | Within 90 days after completion of the… |
| New York | Yes, Transactions of $2.5MM or less | New York Department of State, Division of… | Generally 30 days after a state agency… | Within 8 months after completion of the… |
| North Carolina | None | North Carolina Department of the Secretary… | Periodic payments follow the contract; the… | Within 120 days after the claimant's last… |
| North Dakota | None | North Dakota Secretary of State, Central… | By the contract date, or if none, within… | Record with the county recorder within 90… |
| Ohio | None | Ohio Secretary of State, Business Services… | By the contract payment date, or if none,… | Within 75 days after last furnishing on… |
| Oklahoma | None | Oklahoma County Clerk, UCC Central Filing… | Generally within 45 days of the designated… | Generally within 90 days after last… |
| Oregon | None | Oregon Secretary of State, Corporation… | Claims are overdue if not paid within 45… | Generally within 75 days after the… |
| Pennsylvania | None | Pennsylvania Department of State, Bureau… | 30 days after receipt of a proper invoice… | Generally within 6 months after completion… |
| Rhode Island | None | Rhode Island Department of State… | Within 30 calendar days of receipt of a… | Generally mail and record a notice of… |
| South Carolina | None | South Carolina Secretary of State, UCC… | Payment vouchers must reach the… | Generally serve the owner and file a sworn… |
| South Dakota | None | South Dakota Secretary of State, UCC… | By the contract date, or within 45 days… | Generally within 120 days after the… |
| Tennessee | None | Tennessee Secretary of State, Division of… | 45 days after receipt of the invoice,… | Generally within 90 days after the… |
| Texas | Yes, Disclosures apply to specific… | Texas Secretary of State, UCC Section… | Overdue on the 31st day after the later of… | Commercial: lien affidavit by the 15th day… |
| Utah | Yes, Commercial financing… | Utah Department of Commerce, Division of… | On the date set by contract, or within 60… | Within 90 days after a notice of… |
| Vermont | Enacted, Transactions under $1,000,000… | Vermont Secretary of State, Business… | 20 days after the end of the billing… | Lien notice filed with the town clerk… |
| Virginia | Yes, Single sales-based financing… | State Corporation Commission, Clerk's… | State agencies: 30 days after receipt of a… | Memorandum of lien within 90 days after… |
| Washington | None | Washington State Department of Licensing,… | 30 days after receipt of a properly… | Record the lien in the county where the… |
| West Virginia | None | West Virginia Secretary of State, Business… | 45 days after a legitimate uncontested… | Generally within 100 days after the… |
| Wisconsin | None | Wisconsin Department of Financial… | 30 days after receipt of a properly… | Within 6 months after the claimant last… |
| Wyoming | None | Wyoming Secretary of State, Business… | 45 days after receipt of a correct notice… | Subcontractors and suppliers generally… |
Questions people ask
Which states regulate invoice factoring?
12 states have a commercial financing disclosure law in effect or enacted (California, Connecticut, Florida, Georgia, Kansas, Louisiana, Missouri, New York, Texas, Utah, Vermont, Virginia). 8 of them expressly reach accounts receivable purchases, which includes factoring. No state licenses ordinary factoring the way it licenses consumer lenders.
Is invoice factoring legal in every state?
Yes. Factoring is the sale of accounts receivable, which the Uniform Commercial Code governs in all 50 states and DC. States differ on cost disclosure, where liens are filed, and the payment and lien rules that affect construction and government receivables.
Where are UCC liens filed?
In most states, with the Secretary of State or an equivalent central office. Georgia is the notable exception: filings go to any county Clerk of Superior Court and are indexed statewide. Each state page names the office and links to its official search.
Where does this data come from?
Each state's record was researched from its statutes, its Secretary of State and regulators, and cross-checked against reputable legal summaries, then dated. The full dataset, 51 jurisdictions, is free to download on our open data page.
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