| Disclosure law | None |
|---|---|
| UCC filing office | Oregon Secretary of State, Corporation Division (UCC section, Salem) |
| State agencies pay | Claims are overdue if not paid within 45 days of the latest of invoice receipt, billing statement or the date the claim is made certain |
| Late-pay interest (state) | Two-thirds of 1% per month, capped at 8% a year, on overdue state agency accounts |
| Lien deadline (private) | Generally within 75 days after the claimant's last furnishing or after completion of construction, whichever is earlier |
| Public payment bond | Public improvement contracts over $100,000 (over $50,000 for highway, bridge and other transportation projects) |
Who uses invoice factoring in Oregon?
Oregon receivables cluster around a few large buyers. In the Portland metro, semiconductor fabs and suppliers around Hillsboro, the athletic footwear and apparel headquarters in Beaverton and a heavy-truck maker in Portland buy from machine shops, staffing firms, logistics companies and packaging suppliers. The Port of Portland and the Columbia River barge system move grain, autos and containers. Wood products and timber still drive the southern and central valleys, data centers in Hillsboro and Prineville buy construction and electrical work, and hospital systems such as OHSU and Providence are steady but slow payers. Federal power and Air National Guard work add government receivables.
Seasonality is real in Oregon. Nursery stock, wine grapes, hazelnuts and other Willamette Valley crops bill in harvest bursts, and food processors pay growers and haulers on long terms. Tech supply chains often run net 60 to net 90 with strict supplier portals. Construction subs should note that private owners must pay within 14 days of a billing under Oregon law, which shortens the gap a funder has to cover.
- Industries that factor most: Semiconductors and electronics, Wood products and timber, Food processing and agriculture, Logistics and port services, Healthcare services, Construction.
- Metro areas: Portland, Salem, Eugene, Bend, Medford.
- Federal installations that buy from local firms: Kingsley Field Air National Guard Base, Portland Air National Guard Base, Bonneville Power Administration (Portland headquarters).
Does Oregon regulate invoice factoring?
Oregon 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 Oregon?
Where UCC-1s are filed in Oregon: Oregon Secretary of State, Corporation Division (UCC section, Salem). All UCC filings can be made online; fixture filings are recorded in the county real property records, and custom or certified searches are available by request form.
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 Oregon 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 Oregon pay?
Oregon state agency deadline (ORS 293.462): Claims are overdue if not paid within 45 days of the latest of invoice receipt, billing statement or the date the claim is made certain. Late interest: Two-thirds of 1% per month, capped at 8% a year, on overdue state agency accounts. Public construction follows ORS 279C.570 (interest on late progress payments at 3 times the 90-day commercial paper discount rate, capped at 30%) and ORS 279C.580 (primes pay subs within 10 days of being paid).
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 Oregon 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, ORS 87.001 to 87.093): Generally within 75 days after the claimant's last furnishing or after completion of construction, whichever is earlier. To enforce: Generally within 120 days after the lien is filed, with a notice of intent to foreclose sent at least 10 days before suit.
- Preliminary notice: A notice of right to a lien to the owner is generally required from suppliers of materials, equipment or services not hired by the owner (not for labor on a commercial improvement); it protects only work furnished from 8 business days before the notice is delivered (ORS 87.021).
- Private prompt pay (ORS 701.620 to 701.640): owner to contractor: progress payments no later than 14 days after the owner receives the billing; final payment within 7 days after the owner approves the work; contractor to sub: within 7 days after the original contractor receives payment; late interest: 1.5% per month on late payments.
- Public projects (ORS 279C.380 and 279C.600 to 279C.610): you cannot lien public property, so payment bonds take its place. Bond required: Public improvement contracts over $100,000 (over $50,000 for highway, bridge and other transportation projects). Claim notice: Written notice of claim to the contractor and contracting agency no later than 180 days after last furnishing; suit within 2 years after last furnishing.
- 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 Oregon business know?
- Oregon's private construction prompt pay law (ORS 701.620 et seq.) carries 1.5% per month interest and fee shifting, which makes construction receivables in Oregon more predictable to factor than in states without a private statute.
- The 75-day lien window is measured from last furnishing or completion of the whole project, whichever is earlier, so an early-phase sub can lose lien rights before its own work ends.
Questions people ask
Is invoice factoring legal in Oregon?
Yes. Factoring is a sale of accounts receivable governed by Oregon's version of UCC Article 9. The funder files a UCC-1 with the Secretary of State's Corporation Division and sends your customers a notice of assignment so they pay the funder. Oregon has no factoring-specific disclosure law, so the contract terms you negotiate are what govern the deal.
Does Oregon require a disclosure for factoring deals?
No. As of November 2026 Oregon has not enacted a commercial financing disclosure law like California's or New York's, and law-firm surveys of enacted state laws do not list it. Without a standard form, ask each funder for the advance rate, every fee, the total dollar cost at your volume and the exit terms in writing before you compare offers.
Where do I search for UCC liens in Oregon?
Use the Oregon Secretary of State's online UCC search, run by the Corporation Division. Search your exact legal business name and note every secured party with a lien on accounts or general intangibles. Fixture filings are recorded with the county where the real property sits, and the Corporation Division takes custom search requests by form.
How fast must a private owner pay a contractor in Oregon?
Under ORS 701.620 et seq., a private owner generally must make progress payments within 14 days after receiving a billing, and a contractor must pay subs within 7 days after it is paid. Late amounts generally carry 1.5% per month interest. Contracts can add detail, so read yours, but these short clocks make Oregon construction receivables easier to finance.
How fast can a Oregon 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
- Oregon Secretary of State, Corporation Division public records online
- Oregon Secretary of State, UCC search
- ORS 293.462, interest on overdue state accounts
- Levelset, Oregon prompt payment requirements
- Levelset, Oregon lien law FAQs
- Levelset, Oregon 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.