If you are a commercial General Contractor or Subcontractor, with progress billing, we have a factoring plan for you. Contractors have special risks, costs and billing issues and many factoring companies do not have programs for these industries. We do!
Building suppliers have certain rights under construction lien laws and there is additional risk involved for the investor. Because of this, there are not many factoring companies that will cover construction receivables. More due diligence has to be done with construction factoring than with other factoring.
Each week when you invoice for the work you completed, you also send the invoices to the factoring investor and receive about 70% advance on that amount. When the invoice is paid, you'll get the rest of that invoice, minus a fee. The amount of the fee would probably be in the 2%-6% range.
It doesn't matter if the entity you are doing the work for is the company owning the project or the GC or the government, you can factor the invoices. The credit of the company paying you is looked at much more than your company credit is.
We understand construction contractors' cash flow problems: meeting payroll, buying supplies, paying benefits and Workers Comp. and more.
Some of the contractors that can use factors include: Appraisers, Architects, Asphalt companies, Brick Masons, Cable Contractors, Carpenters, Carpet installers, Ceiling/Drywall Contractors, Electrical Contractors, Engineers, Excavators, Fire Sprinkler Contractors. Flooring Contractors, General Contractors, HVAC, Inspectors, Landscapers, Paving, Plumbers, Roofers, Security Firms, Steel Fabricators, Tile Contractors, Underground Utilities and many more.
When you get a nice big contract, you don't want to worry every week if you can meet payroll or buy supplies for next week's part of the job. Call us now and we will get your cash flow problems solved.