Construction Factoring For Subcontractors

Many construction subcontractors have trouble paying employees or suppliers on time. Often, they have cash flow problems because clients pay invoices in 30 to 60 days while suppliers ask for quick payments. One way to fix this working capital problem is to use a revolving line of financing. This article explains how construction factoring can […]

How to Finance a Roofing Company

Paying employers and suppliers on time is a major concern for small roofing companies. However, making timely payments can be difficult because commercial clients and general contractors (GCs) pay invoices in 30 – 60 days. Offering net payment terms can create cash flow problems for businesses that aren’t well capitalized. This article explains how construction […]

Financing for Construction Companies

Getting financing has always been a challenge for construction subcontractors. Most banks and financial institutions are not comfortable with the industry and work only with larger companies. This barrier leaves subcontractors without many options if they need financing to help pay for expenses such as salaries, equipment, rent, suppliers, and mobilization. In this article, we […]

Progress Payments Financing for Construction Subcontractors

Progress payments are common in the construction industry. They are also one of the reasons why many factoring companies cannot work with subcontractors in the construction industry. This article discusses how progress payments work, why they are a problem for some finance companies, and how construction factoring overcomes those issues. We cover: What is a […]

Invoice Factoring For Landscaping Companies

Most commercial clients pay their invoices in 30 to 60 days. These terms can create cash flow problems for landscaping companies that can’t afford to wait for the payment. Invoice factoring allows you to solve this problem by financing slow-paying invoices for commercial clients. This improves your cash flow and allows you to grow your […]

Invoice Financing For Underground Utility-Locating Companies

One of the challenges of working with general contractors, utility companies, and commercial clients is that they often pay their invoices in 30 to 60 days. They can be great clients because they provide steady and reliable work. However, this value comes at a cost: slow payments. Slow payments can be a problem for small […]

Factoring Financing For Lumber Distributors

One of the challenges of providing lumber to general contractors and construction companies is that you often need to provide them with payment terms. Most construction projects have payment schedules based on completion and other criteria, and GCs often have to abide by them. As a result, you get paid after they get paid. Unfortunately, […]

Financing For Utility Construction Companies

Undercapitalized utility construction companies can get into financial problems when they give payment terms to clients. These terms are often non-negotiable and allow clients to pay invoices in 30 to 60 days. This article discusses two solutions: invoice factoring and construction factoring. Both solutions can be used to finance slow-paying invoices and improve cash flow. […]

Financing a Directional Boring / Directional Drilling Company

Managing the cash flow of a directional boring/drilling company can be challenging. Like most companies in construction, they face a common cash flow dilemma. They have to pay expenses quickly but wait up to 60 days to get paid by clients. This situation can leave the company with a cash shortfall, unable to meet obligations […]

Why Can’t Construction Factoring Companies Factor Retainage Payments?

Most construction subcontractors are familiar with the concept of retainage. Basically, their general contractor (GC) withholds 5% – 10% (varies) of their payments until the project is completed. General contractors use this practice because withheld funds can be used to fix any issues with the work. Additionally, the withholding funds are an incentive to the […]