How Does Construction Factoring Help 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 to 60 days. Offering net payment terms can create cash flow problems for businesses that aren’t well capitalized. This article explains how construction […]

7 Ways to Finance Your Construction Company

Getting financing has always been a challenge for construction subcontractors. Banks and financial institutions have strict underwriting criteria and work only with larger companies. This situation creates problems for subcontractors who need financing to run their companies. This article discusses seven ways to finance a small subcontracting business. These options are available to small and […]

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 factoring 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 solution improves your cash flow and allows you to grow […]

Invoice Financing for Underground-Utility-Locating Companies

Many underground-utility-locating companies find it challenging to wait 30 to 90 days to get paid by commercial clients. Offering payment terms is a standard business practice. However, it can create cash flow problems for companies that aren’t well-capitalized. This article explains how to improve cash flow by financing invoices using factoring. The article covers the […]

Factoring Financing for Lumber Distributors

One of the challenges of providing lumber to general contractors and builders is that you often need to provide them with 30 to 60 days to pay their invoices. Offering payment terms can strain your cash flow and affect your ability to pay your expenses. This article discusses how lumber distributors can use factoring to […]

Financing for Utility Construction Companies

Undercapitalized utility construction companies can experience 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. We […]

Financing a Directional Boring / Directional Drilling Company

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

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% to 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, withheld funds are an incentive for the subcontractor […]