According to the Construction Financial ManagementAssociation it takes some construction contractors an average of 60 days tocollect on invoices.
And that’s not the half of it. Many experienced, well run constructioncompanies have to pass on certain jobs because they don’t have the resources tofund the project. Getting a Line ofCredit from your local bank has been difficult in the past couple years.
Factoring commercial construction loans is a simplesolution to managing cash flow, meeting payroll, and paying bills on time. Even when the General Contractor is not ableor willing to pay construction invoices in a timely manner, sub-contractors canfactor out their invoices for immediate working capital, without incurringdebt. (Usually your credit is not an issue) Short App - Six Questions
It take more than a minute to fund such a project, andany company who says they can do it over night, may be using questionablemarketing tactics. The best solution isto apply for commercial construction “before” you actually need it. In fact, while you are in the process ofbidding the job, is a good time to contact your Accounts Receivable ConstructionLender. They can run a credit check onthe General Contractor or the Developer, and give you inside information whichcan be useful in bidding the contract.
An experienced Construction Accounts ReceivableSpecialist is one who can sort through the factoring companies, and come upwith 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) creditrating of the General Contractor when you are a sub-contractor.
Learnmore, quick questions, no obligation, no fee for placement service. Construction Factoring
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