Construction Factoring – Affordable Financing For SubContractors

Are you a subcontractor that is billing GC’s, commercial clients or the government? Can’t afford to wait 30 to 60 days to get paid? Read this article to learn about construction factoring.

One of the biggest challenges for construction subcontractors is meeting payroll. Paying employees and suppliers is often hard because get paid 30 to 60 days after they submit their invoices.

Whether we like it or not, this is the way things are done in the construction industry. And, unless the subcontractor has a large cash reserve, waiting 60 days can be close to impossible. Especially with the never ending payroll responsibilities.

Going to the bank to get a business loan or line of credit won’t help much. Banks are notorious for not lending money to subcontractors. Furthermore, banks usually require at least 2 years worth of audited financial statements showing a profit, and their loans can take weeks or months to get setup.

There is an alternative. This alternative can eliminate the payment wait and get invoices paid in a little as 2 days. Getting paid quickly allows subcontractors to easily pay employees and suppliers on time, enabling them to grow their businesses. The name of this financing tool is construction factoring, a special type of invoice factoring. Factoring receivables is an easy way to finance and grow your construction business.

Factoring works as follows:

1. You send a bill to the GC or client for a progress segment or completed job
2. The factoring company advances you up to 75% of the submitted invoice. You get immediate use of the money. The remaining 25% is kept as a reserve.
3. Once your client pays the invoice, the 25% reserve is rebated to you, less a small fee

The biggest requirement to qualify for factoring financing is to do business with reputable GC’s or commercial clients and to have a well-run business. Generally, a factoring financing line can be set up in as little as 5 days.

As you can see, accounts receivable factoring provides you with a great tool to finance your growing construction business.

About Commercial Capital LLC:
We provide invoice factoring and construction factoring financing to subcontractors. For more information on construction factoring, please call (866) 730 1922.

By Marco Terry Published: 10/14/2006

Construction Factoring

If you are a subcontractor working on a project, then you could qualify for something called construction factoring. Are you waiting from 30 to 90 days after completing a job in order to get pa…

Construction Factoring on the Rise

Because construction subcontractors usually have to wait as much as 60 days to get paid for their invoices, construction factoring will advance funds against invoices and provide enough …

Construction Factoring : Construction Financing

Construction Factoring is different from bank financing for starters it is fairly easy to obtain and can be set up very quickly. HRH Funding solutions offers Construction Financing for Contractor and …

Construction Factoring – Financing For SubContractors

The biggest requirement to qualify for construction factoring financing is to do business with reputable GC’s or commercial clients and to have a well-run business. Generally, a factoring

Related Blogs

• Financial Records » Blog Archive » Irish Construction Insurance
• China Mobile Limited 2009 Annual Report on Form 20-F Filed with the SEC | NEWS.GNOM.ES

Technorati Tags: construction factoring, factoring financing, small business

Invoice Factoring As A Short-Term Cash Flow Solution

 by: Henry Byers 68c

Invoice factoring refers to the practice where smaller companies sell invoices in order to receive money today. IN this case they do not have to wait for a credit period of 30, 60, or 90 days. Thus by selling invoices smaller companies do not create debt. This practice of invoice factoring is basically used as a finance management tool.

This practice of invoice factoring is usually adopted to avoid any loans or giving any collateral against availing any loan. The fee for invoice factoring is paid in terms of discount. This discount can ranger anywhere between 2.5% to 7%. As a result of invoice factoring the smaller companies avoid exhibiting any loans on their balance sheets plus they also do not have to pay any interest for the money taken. This results in better profit figures.

Various agencies also help small companies in invoice factoring. These agencies set up the company with the right factor for a particular factoring situation. If someone has an invoice or any receivable to be factored then these agencies come out to help in the same.

These agencies help the manufacturers, distributors, importers, exporters, wholesalers, contractors, suppliers etc equivocally. They also help truckers in construction invoice factoring. These agencies help to locate best factor for a particular situation within the area or can also help to choose from nationwide factoring companies to avail the best rates. They usually customized solution as per the clients need. To avail the services of such companies firstly a form needs to be filled out stating the type of receivables and other details required for invoice factoring. Then these companies approach the probable paying parties that avail invoice factoring. Some of these agencies assume the risk in the deal for non-recourse factoring where the client is not required to pay back.

There are different types of companies with different types of rates for factoring. Any invoices or receivables to the amount of $100,000 can be factored immediately. The average rate payable for discount in such cases is 2-5%.

Some agencies specialize for a certain category of invoice factoring. For example, some agencies indulge only in invoice factoring for medical industry. Some agencies, which cater to small and medium businesses for invoice factoring, create invoices online and receive immediate funding. They usually give a 24 hours turnaround. Other types of agencies also give funds to small businesses for their day to day operations against collateral of their invoice or purchase order. These kinds of agencies also buy mortgage notes, structured settlement annuity or medical receivables.

About The Author

Henry Byers, Retired Accountant and Receivable Factoring advisor at eCPA Group LLC ( http://www.invoice-factoring-hq.com ) publishes other articles related to Receivable Factoring at http://www.accounts-receivables-factoring.info and http://www.factoring-invoice.info.

This article was posted on January 18, 2006..

The Canada Small Business Financing Program | Free For Loan

A Good Deal for Financing New Businesses & Established Ones, Too By Susan Ward, About.com Finding small business financing can be tough, especially if.

Online Tools for Small Business Owners

Avast! has a free home version, a desktop version, a small business version, and a professional version. They also have a Mac version. They claim 80 million users and they have been voted a “Best Bet” by PCMagazine. power on

Small Business Finance

It is difficult for businessmen to concentrate towards the growth of his business if he is short of finances. Also financial help is a must for people who want to start their own business. Small business finance helps you with all your ….

Technorati Tags: cash flow, construction factoring, factoring, invoice, receivable, small business, small business factoring