According to the Construction Financial Management
Association it takes some construction contractors an average of 60 days to
collect on invoices.
And that’s not the half of it. Many experienced, well run construction
companies have to pass on certain jobs because they don’t have the resources to
fund the project. Getting a Line of
Credit from your local bank has been difficult in the past couple years.
Factoring commercial construction loans is a simple
solution to managing cash flow, meeting payroll, and paying bills on time. Even when the General Contractor is not able
or willing to pay construction invoices in a timely manner, sub-contractors can
factor out their invoices for immediate working capital, without incurring
debt. (Usually your credit is not an issue) Short App - Six Questions
It take more than a minute to fund such a project, and
any company who says they can do it over night, may be using questionable
marketing tactics. The best solution is
to apply for commercial construction “before” you actually need it. In fact, while you are in the process of
bidding the job, is a good time to contact your Accounts Receivable Construction
Lender. They can run a credit check on
the General Contractor or the Developer, and give you inside information which
can be useful in bidding the contract.
An experienced Construction Accounts Receivable
Specialist is one who can sort through the factoring companies, and come up
with the best Lender for you, based on 1) type of construction project 2)
amount of Invoices you will want to factor per month 3) your location 4) credit
rating of the General Contractor when you are a sub-contractor.
Learn
more, quick questions, no obligation, no fee for placement service. Construction Factoring
