Financing Without Borrowing
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.
Your Cash Flow Needs Now!
Click below
and you will find facts about Factoring
that can truly benefit You!
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.
Call us at
800 220 9084
Email Fred@FredCoutts.com
Web: www.FredCoutts.com
