Construction Factoring: Grow Your Business WITHOUT Creating Debt
Accounts Receivable Funding is the SMART Small Business Financing Solution
Construction factoring, also called contractor factoring, is a fast, powerful small business financing & construction management tool that can provide immediate cash to smooth out those unpredictable billing cycles that create havoc for you & your construction company. Depending on your particular needs, contractor factoring can be used along with, or in place of, most conventional construction loans. Factoring construction receivables is much faster and far easier to qualify for than conventional construction loans.
Few things make a contractor happier than a building project under construction; work site bustling with progress and activity. But for many contractors and subcontractors alike, the down side to a busy construction site is the logistical challenge of having sufficient financial resources available to make sure that equipment and materials are delivered on time and there are enough subcontractors and labor to get the job finished on time and on budget. This is particularly true if the construction company has multiple large projects underway simultaneously.
In a growing economy, construction work increases rapidly, but so does the pile of unpaid bills. Contractors and subcontractors are frequently exposed to the types of risks that could easily put you out of business.
Although prompt pay laws have been instituted in many states, they may not be working all that well for many construction companies. According to the Construction Financial Management Association it takes specialty contractors an average of 66 days to collect on due invoices!
Often a qualified construction company will pass on a job simply because it does not have the financial resources up front to fund the project. Commercial construction loans from a bank can be an option, but are rare and ridiculously hard to qualify for.
Construction factoring is a fast, convenient, cost-effective and affordable alternative to standard commercial construction loans and is a great way to grow your company. Factoring your construction invoices with TCF can get you the money you need quickly (often in as little as 24 hours) so you can pay for materials, equipment and labor to take on the jobs you want. And because our construction factoring is so affordable, you will now be in a position to compete for larger, more lucrative projects that you never thought you could afford to take on.
Just like regular invoice factoring, with construction factoring you receive a large percentage of your invoice amount up front. The small remaining balance is held in reserve until the invoice is paid. After payment is received, the balance, less a small factoring fee, is paid to you. Historically the advance amount is more than enough to cover all related expenses while still leaving your company with an excellent profit margin.
Many factoring companies refuse to offer construction factoring because of the billing and payment delays typical with many contractors. Not us. We are committed to helping your company grow. At TCF, being in the construction industry won't keep you from getting the cash you need immediately.
At TriMark Capital Funding, Inc. our construction factoring solutions are fast, easy and flexible.
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