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| Factoring Receivables Solutions,
Inc. An Affordable Factoring Company Offering 97% Advance Rates Construction Industry Factoring For those of you in the construction industry, whether you are a General Contractor or Subcontractor, you know that receiving payment on time for any project is rare. It may take several weeks after the job is completed or until another contractor that you are working for is paid before you receive your money. For many of you, this can mean trouble covering your payroll, inability to take on new jobs and keep loyal customers, not enough cash to fuel expansion of the business, and higher material costs. Many times, one large job can tie up your available cash. You are already aware that banks across the country have turned away from the construction business and finance companies will generally offer little more than equipment leasing for you. And most factors shy away from construction receivables because of the various legal barriers involved. Fortunately, we already know everything you need to know to convert your commercial construction receivables to immediate cash. The good news is, approval depends primarily on the creditworthiness of your customer, not yours. So don't be afraid that you will be turned down, even if you have a bankruptcy, or tax liens, or "slow pays." Now it's possible to get your money RIGHT NOW: not 30, 60, or 90 days down the road. Your General Contractor is waiting to get paid from the Owner. You are waiting to get paid from the General Contractor or a subcontractor. You need cash now to: Make payroll Pay a supplier to get discounts To start a new job We can help your firm through our construction factoring program. Over the years we have factored contractors andsubcontractors. We have factored window and door manufacturers, concrete providers, heating repair and installation, electricians and others. Because of mechanic lien laws, suppliers have certain rights. Factoring construction receivables requires additional work on your and your customers part. See below for our construction factoring guidelines on how to factor your construction receivables. Also please fill out our construction quick application if you wish to factor. We fund construction receivables only in the United States. Construction Guidelines Factoring Construction Receivables requires different standards than factoring other types of receivables. The following comments assumes you are a subcontractor. Joint Check Agreement: You, us and the General Contractor will have to sign a joint check agreement indicating that all payments must come to us. Lien Rights: You must assign all lien rights to us. If the state requires preliminary notices, these must be filed on time. Verification of Invoices: The general contractor (GC) must sign off before any invoice is funded. If the GC will not sign, we cannot fund. Payment of Suppliers from Advance. We generally advance 70 to 80% to our client. Because of the Mechanics Lien Laws affecting your supplier, we will want to pay major suppliers from your advance OR have your suppliers sign lien waivers. We will not fund retainage, liens, offsets, charge backs or claims. The average customer will pay 3-4%of the gross invoice aged 30 days, 6% if aged 60 days. Bonding: If the job is bonded, the bonding agency must either put us in a first UCC-1 position on the receivables OR sign a contract signing they will pay us for invoices factored if the Bonding agency takes over the job. General Contractor: The same rules apply to General Contractors in privity with the owner as discussed above. Click here for the On-Line Factoring Request Form or Call or email me now for your FREE no obligation analysis of your cash flow needs. To talk with a member of our sales team, please contact one of our regional offices at: Toll Free: 888-266-0197 and ask for Natalie or Andrea Email Us |
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To talk with a member of our sales team, Toll
Free: 888-266-0197 |
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