| Disclosure law | None |
|---|---|
| UCC filing office | Colorado Secretary of State, Business and Licensing Division, UCC filings (Denver) |
| State agencies pay | 45 days after the executive branch liability was incurred |
| Late-pay interest (state) | 1% per month on the unpaid balance from the 45th day |
| Lien deadline (private) | Generally within 4 months after last furnishing labor or materials (2 months for day laborers) |
| Public payment bond | Public works contracts over $50,000 (state projects over $150,000) |
Who uses invoice factoring in Colorado?
Colorado's B2B payers lean toward aerospace, defense and energy. Lockheed Martin Space in Littleton, United Launch Alliance in Centennial and BAE Systems' space business in Broomfield buy engineering, machining and test services. Colorado Springs is home to Fort Carson, Peterson and Schriever Space Force Bases and the Air Force Academy, and Buckley Space Force Base sits in Aurora, so federal contractors are common. Oil and gas producers in the Denver-Julesburg Basin buy field services and trucking. Meatpacking and agriculture around Greeley, ski resorts in the mountains and large hospital systems along the Front Range add more commercial customers.
Federal agencies commonly pay about 30 days after a proper invoice, and state agencies must pay executive branch bills within 45 days or owe 1% per month interest. Energy work rises and falls with drilling activity, and mountain tourism peaks in winter and summer. Construction is a large market along the Front Range; Colorado has no private prompt pay statute, but public contractors must pay subs within 7 days of being paid.
- Industries that factor most: Aerospace and space systems, Defense contracting, Oil and gas services, Construction, Healthcare services, Food processing and agriculture, Tourism.
- Metro areas: Denver, Colorado Springs, Aurora, Fort Collins, Greeley, Boulder.
- Federal installations that buy from local firms: Fort Carson, Peterson Space Force Base, Schriever Space Force Base, Buckley Space Force Base, U.S. Air Force Academy.
Does Colorado regulate invoice factoring?
Colorado has no commercial financing disclosure law, so a factor is not required by state law to give you a standardized cost disclosure. There is no federal one for business financing either. That puts the burden on you to get every fee in writing.
Factoring is generally structured as a purchase of your invoices rather than a loan, which is why consumer lending rules and usury caps generally do not apply to it. The protections that do apply come from your contract and from the Uniform Commercial Code, which governs the sale of accounts in every state.
Ask any provider for the total dollar cost on a sample invoice, the advance rate, every fee, the term and the exit terms. Our proposal checklist lists what a good proposal shows, and the disclosure law tracker shows which states require it.
How do UCC filings work in Colorado?
Where UCC-1s are filed in Colorado: Colorado Secretary of State, Business and Licensing Division, UCC filings (Denver). Online searches and copies are free; a standard debtor-name search can be certified on request, and the office accepts searches only through its electronic system, not by written request.
A factor will search that index on your exact legal name before it funds, and will file its own UCC-1 on your accounts receivable at closing. Anyone already claiming your receivables, such as a bank, an SBA lender or a merchant cash advance provider, must release, subordinate or sign an intercreditor agreement first. Search your own name first at the official Colorado UCC search; old filings from paid-off lenders are common and can take a week or more to terminate. More in UCC liens and intercreditor agreements.
How fast do government payers in Colorado pay?
Colorado state agency deadline (C.R.S. §24-30-202(24)): 45 days after the executive branch liability was incurred. Late interest: 1% per month on the unpaid balance from the 45th day. Public construction contracts over $150,000 follow C.R.S. §24-91-103: monthly progress payments, final settlement within 60 days of acceptance, and payment to subs within 7 days of receipt, with interest at the contract rate or 15% a year, whichever is higher. A 2025 bill (HB25-1101) amended §24-30-202(24); its final effect on these terms was not verified.
Federal agencies follow the Prompt Payment Act: generally 30 days after a proper invoice, with interest at the Treasury rate (4.75% for July 1, 2026 to December 31, 2026) when they pay late. To factor federal invoices, the funder usually needs an assignment of claims acknowledged by the contracting officer, which adds a week or two to setup. See factoring for government contractors and the prompt payment interest calculator.
What do Colorado lien and prompt pay rules mean for construction factoring?
Funders that factor construction receivables check lien and bond rights before they advance on a pay application, because those rights are what get an unpaid sub paid. Described generally:
- Mechanics lien deadline (private work, C.R.S. §38-22-101 to -133): Generally within 4 months after last furnishing labor or materials (2 months for day laborers). To enforce: Generally within 6 months after last work or completion, with a notice of the action recorded.
- Preliminary notice: Not generally required at the start of a project, but a notice of intent to lien must be served on the owner and prime contractor at least 10 days before filing (C.R.S. §38-22-109(3)).
- Private prompt pay: we could not verify a general private construction prompt payment law in Colorado; your subcontract's pay terms control.
- Public projects (C.R.S. §38-26-105 to -107): you cannot lien public property, so payment bonds take its place. Bond required: Public works contracts over $50,000 (state projects over $150,000). Claim notice: No statutory notice for a bond claim (check the bond); a verified statement of a claim against contract funds may be filed up to the time of final settlement, with suit within 90 days after final settlement.
- Read every lien waiver before you sign it, and ask counsel how a waiver signed before payment affects your rights. More in factoring for construction subcontractors.
What else should a Colorado business know?
- Colorado lets unpaid subs and suppliers on public jobs file a verified claim against the contract funds the public owner still holds, up to final settlement, which can protect a funder's collateral on public construction receivables.
- Colorado's online UCC search and copies are free, so it costs nothing to check your own filings before you apply.
Questions people ask
Is invoice factoring legal in Colorado?
Yes. Factoring is a sale of business receivables governed by Colorado's version of UCC Article 9, not a consumer loan. The funder buys your invoices and files a UCC-1 with the Colorado Secretary of State. Invoices to federal agencies at Fort Carson or the Space Force bases also need an Assignment of Claims filed with the contracting and disbursing offices.
Does Colorado require a disclosure for factoring deals?
No. Colorado has no commercial financing disclosure law, so no state rule requires an APR or standard cost form on a factoring offer. Compare proposals on the advance rate, the fee per 30 days, minimum volume, reserve release timing and termination terms, and get every fee in writing before you sign.
Where do I search for UCC liens in Colorado?
Use the Colorado Secretary of State's online UCC search. A standard search looks up a debtor's exact name, and an advanced search can use a document number or secured party. Searches and copies are free, and a standard search report can be certified on request. Clear out filings from lenders you have already paid off.
Can a Colorado aerospace supplier factor invoices to a prime contractor?
Usually yes. When you sell to a large prime in Littleton, Centennial or Colorado Springs, the funder underwrites the prime's credit and sends a commercial notice of assignment. Large primes are strong credits, so advances are often high, but milestone billing and acceptance terms can slow payment and affect which invoices qualify.
How fast can a Colorado business get funded by factoring?
With a clean file (current AR aging, invoices, a clear UCC search and creditworthy customers), first funding commonly takes about one to three weeks, and later invoices usually fund within a day or two of verification. Federal receivables take longer because of the assignment of claims.
Sources
- Venable LLP, State Commercial Financing Disclosure Laws (March 2026)
- Colorado Secretary of State, UCC searching FAQs
- C.R.S. §24-30-202 (Colorado public.law)
- Levelset, Colorado prompt payment FAQs
- Levelset, Colorado mechanics lien FAQs
- Levelset, Colorado bond claim FAQs
General information, not legal advice. Statutes and deadlines change and have exceptions; check the source or ask counsel before relying on one. Spot an error? Tell us and we will fix it.