What can construction factoring is do for your business?
Construction subcontractors have a challenge: paying employees and paying suppliers on time. This can be a problem if you have to wait 30 to 60 days to get paid by your general contractor. Especially if your business is growing (or new) and doesn’t have a significant cash cushion. Construction factoring is a form of invoice financing that can get you funds for invoices quickly and effectively. It can give you the necessary funds to meet your current expenses and take on larger jobs.
Get an instant construction factoring quote by clicking here. Services in the USA / Canada.
(Note we can only offer this service to subcontractors that invoice a minimum of $50,000 per month)
How does construction factoring work?
Using contractor factoring is very simple and integrates well to most companies. The process works as follows:
- You deliver your products or services to your customer
- You send an invoice to your client and send a copy to the us
- We verify the invoice with the GC
- We advance you up to 85% (the remaining 15% is used as a reserve)
- We wait to get paid by the GC or Customer
- Once we get paid, we rebate the 15% reserve (less a small discount)
Construction factoring is easy to obtain
Construction factoring is different from bank financing. For starters is fairly easy to obtain and can be set up very quickly. The biggest requirement is that you work with general contractors or commercial customers that pay their invoices reliably in 60 days or less.
Want to learn more about construction factoring?
If you want to learn more about construction subcontractor factoring please visit our Invoice Discounting and Invoice Factoring Resource Center. You can also read the following articles:
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