| Disclosure law | None |
|---|---|
| UCC filing office | Mississippi Secretary of State, Business Services (UCC) |
| State agencies pay | 45 days after receipt of the invoice and receipt, inspection and approval of the goods or services |
| Late-pay interest (state) | 1.5% per month (or portion of a month) on the unpaid balance after the 45 day period |
| Lien deadline (private) | Within 90 days after the claimant's last work or materials, filed with the county chancery clerk |
| Public payment bond | Payment bond generally required; contracts under $25,000 paid in a lump sum at completion may skip the bond |
Who uses invoice factoring in Mississippi?
Mississippi's largest B2B payers are defense and manufacturing. Ingalls Shipbuilding in Pascagoula is the state's biggest private employer and buys from a wide ring of fabricators, staffing firms and marine suppliers. The Nissan plant in Canton and the Toyota plant in Blue Springs anchor automotive supply chains. Keesler, Columbus and Meridian bases, the Seabee center in Gulfport, Camp Shelby and NASA's Stennis Space Center buy local services. Poultry processors, timber and paper mills, and the ports of Gulfport and Pascagoula create steady trucking and logistics receivables. Gulf Coast and Tunica casinos add hospitality vendors.
Federal and shipyard subcontractors often wait 45 to 60 days or more for payment as prime contractor billing works through. Agriculture (poultry, catfish, cotton, soybeans) and timber are seasonal and weather driven, and hurricane season can disrupt Coast operations. State agencies have 45 days to pay vendors before interest runs.
- Industries that factor most: Shipbuilding and defense, Automotive manufacturing, Poultry and food processing, Timber and paper, Trucking and port logistics.
- Metro areas: Jackson, Gulfport-Biloxi, Hattiesburg, Southaven.
- Federal installations that buy from local firms: Keesler Air Force Base, Columbus Air Force Base, Naval Air Station Meridian, Naval Construction Battalion Center Gulfport, Camp Shelby, John C. Stennis Space Center.
Does Mississippi regulate invoice factoring?
Mississippi 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 Mississippi?
Where UCC-1s are filed in Mississippi: Mississippi Secretary of State, Business Services (UCC). A free public search shows basic debtor and secured party information; viewing filed document images and detailed searches requires a paid subscription.
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 Mississippi 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 Mississippi pay?
Mississippi state agency deadline (Miss. Code Ann. §31-7-305): 45 days after receipt of the invoice and receipt, inspection and approval of the goods or services. Late interest: 1.5% per month (or portion of a month) on the unpaid balance after the 45 day period. Interest applies to undisputed amounts; bona fide disputes must be settled within 30 days after payment would have been due. On public construction (§31-5-25 and §31-5-27), progress payments unpaid 45 days after due bear 1% per month, and primes must pay subs within 15 days of receiving payment or face a 0.5% per day penalty capped at 15%.
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 Mississippi 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, Miss. Code Ann. §85-7-401 et seq.): Within 90 days after the claimant's last work or materials, filed with the county chancery clerk. To enforce: Suit within 180 days after the lien is filed (can be cut to 90 days if the owner records a notice of contest).
- Preliminary notice: Generally, a claimant without a contract with the general contractor must give the general contractor written notice within 30 days of first furnishing (§85-7-407). Single-family residential projects use a pre-lien notice to the owner at least 10 days before filing instead.
- Private prompt pay (Miss. Code Ann. §87-7-1 et seq. (§87-7-3, §87-7-5)): owner to contractor: progress payments due per the contract; interest starts if unpaid 30 days after the due date. Final payment generally due on completion, beneficial occupancy or architect certification.; contractor to sub: upon receipt of owner payment, in proportion to work completed; a penalty applies if unpaid within 15 days without reasonable cause; late interest: owner to contractor: 1% per month. Contractor to sub: 0.5% per day penalty, capped at 15% of the balance.
- Public projects (Miss. Code Ann. §31-5-51): you cannot lien public property, so payment bonds take its place. Bond required: Payment bond generally required; contracts under $25,000 paid in a lump sum at completion may skip the bond. Claim notice: Claimants with a contract with a subcontractor but not the prime must give written notice to the prime within 90 days of last furnishing; suit within 1 year of last furnishing (§31-5-53).
- 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 Mississippi business know?
- Mississippi mechanics liens are filed with the county chancery clerk, not a recorder or register of deeds.
Questions people ask
Is invoice factoring legal in Mississippi?
Yes. Factoring is a sale of accounts governed by Mississippi's version of UCC Article 9, and the buyer perfects its interest with a UCC-1 filing at the Secretary of State. Mississippi has no factoring-specific license or disclosure statute, so the price, advance rate, recourse terms and notice to your customers are set by the contract you sign.
Does Mississippi require a disclosure for factoring deals?
No. Mississippi has not enacted a commercial financing disclosure law. Bills introduced in 2022 and 2023, including one that would have covered accounts receivable purchases, died in committee. Ask any factor for the total cost in dollars and the fee schedule in writing so you can compare offers on your own.
Where do I search for UCC liens in Mississippi?
Use the Mississippi Secretary of State's UCC search on sos.ms.gov. The free public search shows basic debtor and secured party details for each filing. Viewing images of the filed documents requires a paid subscription. Search your exact legal name to find any existing blanket lien on receivables before you sign with a factor.
How long do Mississippi state agencies take to pay invoices?
Under Miss. Code §31-7-305, public bodies that write their own checks must pay within 45 days after receiving the invoice and accepting the goods or services. Late undisputed amounts earn 1.5% per month. Shipyard and federal subcontractors often wait longer, so Gulf Coast vendors commonly factor those invoices.
How fast can a Mississippi 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
- FindLaw, Miss. Code §31-7-305 (timely payment by public bodies)
- Mississippi Legislature, HB 1271 (2023) bill history
- Mississippi Legislature, HB 1271 (2023) text
- Levelset, Mississippi prompt payment FAQs
- Levelset, Mississippi lien law FAQs
- Levelset, Mississippi bond claim FAQs
- Venable, State commercial financing disclosure laws (March 2026)
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.