The construction industry is notorious for cash flow challenges. Large projects, upfront material costs, and delayed customer payments can leave businesses struggling to pay workers, purchase supplies, or take on new jobs. Construction factoring offers a solution, allowing you to turn your unpaid invoices into immediate cash without relying on traditional loans.
Stop Borrowing Money—Access Your Own Funds Now
Construction factoring provides instant access to cash based on your invoices and the creditworthiness of your customers. Unlike bank loans, which are based on your assets and repayment ability, factoring relies on your historical performance and your clients’ credit profiles. The more creditworthy your clients are, the higher your credit line can be.
At Business Factors & Finance, we specialize in construction invoice factoring for small businesses. We provide fast funding at low rates, assume the responsibility of collecting invoices, and take on 100% of the credit risk. With no upfront fees, straightforward credit qualifications, and a professional, confidential service, we make construction factoring a simple and stress-free solution.
Who Benefits from Construction Factoring?
Construction factoring is an excellent tool for both general contractors and subcontractors across the construction industry. We provide funding for a variety of businesses, including:
- Architects
- Asphalt companies
- Carpenters
- Ceiling/drywall installers
- Electrical contractors
- Engineers
- Excavators
- Flooring installers
- HVAC specialists
- Landscapers
- Paving companies
- Plumbers
- Roofing contractors
- Security firms
- Steel fabricators
- Tile contractors
- Underground utility contractors
Get Paid Quickly and Boost Your Profitability
With construction factoring, you can improve your cash flow, allowing you to:
- Pay workers and suppliers on time
- Take advantage of early payment discounts
- Negotiate better pricing on materials
- Fund new projects and grow your business
By receiving cash for your invoices within 24 to 48 hours, you eliminate the waiting period for customer payments, which often take 30, 60, or even 90 days.
Why Choose Business Factors & Finance?
Here’s why Business Factors & Finance stands out among construction factoring companies:
- Low Rates: We offer competitive rates on the face value of your invoices.
- Fast Funding: Get cash in hand within 24 to 48 hours.
- Credit Risk Management: We take on 100% of the credit risk.
- No Upfront Fees: Simple and transparent pricing with no hidden costs.
- Flexible Qualifications: Even businesses with bad credit can qualify.
- Expert Support: Friendly, professional consultants who understand the construction industry.
How Construction Factoring Works
The construction factoring process is straightforward:
- Submit Invoices: Provide your unpaid invoices to the factoring company.
- Verification: The factor verifies the invoices and checks the creditworthiness of your clients.
- Receive Funds: Get an advance of up to 96% of the invoice value within 24-48 hours.
- Invoice Collection: The factor collects payment directly from your customer.
- Final Settlement: Once the customer pays, you receive the remaining reserve minus factoring fees.
For example:
- Invoice Amount: $20,000
- Advance Rate: 90% ($18,000 upfront)
- Reserve: 10% ($2,000 held until payment)
- Discount Rate: 2.19% per month
If the invoice is paid in one month, the fee is $438, and you receive the remaining $1,562 from the reserve.
Conclusion
Construction factoring is an invaluable financial tool for contractors and subcontractors looking to overcome cash flow challenges, fund new projects, and improve profitability. By partnering with a factoring company like Business Factors & Finance, you gain access to fast, flexible funding tailored to your needs, allowing you to focus on growing your business.
Take control of your cash flow today. Contact us to learn more about construction factoring and get started with a customized solution!