Get Paid Sooner with Construction Factoring
Factoring construction invoices can get you the funding you need! Whether you are rapidly growing, struggling with payroll expenses, or having trouble taking on bigger contracts, construction invoice factoring can help.
Invoice Factoring for Construction Projects
Construction companies face lots of upfront expenses. If you’re waiting 30, 45, 60+ days to be paid for a projector service, covering payroll and paying for supplies, equipment and materials can be a challenge. For a small or expanding subcontractor (or contractor) without enough cash reserves, financing project costs can feel like an impossible task.
If your construction firm would like to get paid faster for finished stages of a project or a completed project, accounts receivable factoring is a fantastic short-term solution. Contractors, subcontractors, suppliers, and small or large construction companies benefit from factoring.
We work with a variety of factoring companies for the construction industry and work to quickly match you up with a construction factoring program that can best fit your requirements. The companies we partner with are credible, knowledgeable, and specialize in the construction field – which means they are comfortable with progress billing and pay-when-paid contracts.
- Construction factoring rates at industry-lows
- No long-term contract is required
- Same-day funding
How Can Construction Factoring Help with Clients Who Won’t Pay?
Dealing with clients who delay or refuse payment can be a major headache in the construction industry. When faced with such situations, construction invoice factoring can be an effective strategy to ensure steady cash flow.
Immediate Cash Flow Relief
When clients are slow to pay or become financially strained, a factoring company steps in to purchase your unpaid invoices at a discounted rate. This means you receive a substantial portion of the invoice amount right away, freeing you from the waiting game and enabling you to use those funds to keep your operations running smoothly.
Outsource the Collection Hassles
One major advantage of partnering with a factoring company is eliminating the need to chase clients for payments. These companies specialize in collections, employing expert strategies to recover outstanding balances. By outsourcing this task, you save valuable time and resources that can be better spent on your core business activities.
Maintain Financial Stability
The injection of immediate cash facilitates your ability to pay suppliers and subcontractors promptly. This not only bolsters your reputation for reliability but also ensures your projects continue without unnecessary delays. Having access to consistent cash flow allows you to embark on new projects with confidence, irrespective of payment delays from current clients.
Avoid Legal Entanglements
Refusing to pay is a reality some clients might opt for despite being satisfied with your work. Rather than engaging in protracted legal disputes, leveraging a factoring company’s expertise allows for smoother recovery processes, oftentimes avoiding legal confrontations altogether.
In summary, construction invoice factoring is an effective tool to combat the interruptions and frustrations caused by non-paying clients, ensuring your business maintains momentum and growth.
Ready to Get Started?
Fill out the form below and one of our factoring experts will help you on your way!
How Does Construction Factoring Work?
A factoring company buys your open invoices & advances you the cash, minus a small percentage. The cost of factoring varies depending on the industry you operate in. In most cases, you’ll receive a cash advance in less than 24 hours. The customer pays the invoice amount to the factoring company at the terms you previously agreed upon. Once paid in full, the discounted amount is returned, less a minimal factoring fee for services provided.
How Does Construction Factoring Manage Unexpected Losses?
Construction factoring acts as a crucial financial cushion for construction companies facing unpredictable events. When unanticipated issues such as equipment failure, labor strikes, or natural disasters arise, these companies often confront sudden expenses that can disrupt cash flow. Construction factoring helps mitigate these challenges by converting unpaid invoices into immediate capital.
Key Benefits of Construction Factoring:
Immediate Cash Flow:
Invoice factoring allows construction businesses to quickly access cash tied up in pending invoices. This rapid injection of funds helps companies cover urgent expenses without disrupting ongoing projects.
Financial Flexibility:
By leveraging the value of receivables, construction firms gain the flexibility needed to address expenses that were not part of the initial budget. This adaptability prevents small issues from escalating into major setbacks.
Reduced Delays and Interruptions:
With the financial backing provided by factoring, companies can keep their projects moving, ensuring that unexpected costs don’t lead to prolonged delays. Timely cash flow helps maintain construction schedules and client relations.
Risk Mitigation:
The ability to access working capital swiftly reduces the risk of financial strain. Companies can navigate through unforeseen disruptions more confidently, knowing they have the resources available to tackle surprise expenses.
In essence, construction factoring equips companies with the tools to handle unforeseen financial challenges efficiently, allowing them to maintain project momentum and achieve successful outcomes.
Construction Factoring is a Flexible Financing Option
Financing construction projects can be tough. The small business lending market remains tight and often leaves construction companies without options for funding. If the bank approves your construction loan, there is no guarantee that you will get the right amount of cash for your business. Additionally, you will be stuck with a loan that you have to pay back. Factoring is not a loan – it’s a cash advance on your outstanding receivables. It’s simply a way to get paid sooner.
No credit check for your company
Fast financing — You can receive funding
in 24 hours or less
No loan to repay
No hidden factoring fees
Highest advance rates in the industry
You get to choose which invoices you factor
No minimums
No long-term contracts
Progress billing is okay
Apply Online Today!
Get a free quote @ 855-322-8671
Funding for Contractors and Subcontractors
Factor Finders works with a variety of companies throughout the construction industry:
- Roofing
- Engineers
- Carpenters
- General Contractors
- Sub Contractors
- HVAC
- Landscapers
- Plumbing
- Steel Fabricators
- Underground Utilities
- Architects
- Electrical Contractors
- Suppliers
- Excavation
Don’t see your niche listed here? No worries. Give us a call and we will take care of the rest.
