Our construction invoice factoring services offer real solutions that can provide subcontractors and construction company suppliers with the needed funding when waiting for their customers to pay is not an option. We are part of an affiliate group of construction factoring professionals specializing in funding options for the construction industry.
CONVERT RECEIVABLES INTO CASH
By converting these receivables into immediate cash, construction companies can maintain operations, pay their suppliers, and invest in new projects without the burden of waiting for customer payments. This not only enhances financial stability but also allows for more strategic planning and growth opportunities in the competitive construction industry.
TAKE ON LARGER PROJECTS
Additionally, having access to immediate cash flow empowers construction companies and subcontractors to take on larger projects and respond to market demands more effectively. As a result, construction businesses can foster stronger relationships with their clients and suppliers, creating a more resilient foundation for future endeavors.
GENERAL QUALIFICATIONS
- 12-month commitment ($2 million a year minimum)
- No invoices where your customer is bonded
- No invoices over 90 days old
- No funding for projects with any portion on retention
- No deals with less than $500k in eligible ARs
- Our client must perform 75% of the project work themselves
- Track record of profitable bidding and execution
- Able to produce accurate financials and Work In Progress (WIP) reporting
- Have a diversity of project sizes and lengths
- Accounts Receivable must exceed Accounts Payable
ADDITIONALLY
- Account debtors must sign our simple estoppel letter
- Must have a first position on all assets (or at minimum all AR)
- Principal (s) must provide a validity guaranty
- Principal(s) must have nothing in their personal credit or background considered significant by the underwriter (Mediocre credit may not be an issue)
- Account debtors must be credit approved
REQUIRED ITEMS
The following documents are required for our evaluation of funding transactions:
- Most recent A/R Aging, Summary or Detailed (aged preferably by Invoice Date, not Due Date)
- Copy of an Open Invoice from AR Aging with supporting documentation (PO, Contract, Vendor Agreement)
- 12-Month Financial Statements (Including YTD Profit and Loss Statements and Balance Sheets
- Most recent A/P Aging Summary
- Copy of Principal(s) Driver’s License(s)
- Copy of Certificate and Articles of Incorporation
- Last 3 Months of Operating Account Bank Statements
- Please provide any additional information that could assist us in evaluating funding transactions
- Any further information that the underwriter may request during the due-diligence process
Once we receive the necessary information, we will forward it to our underwriter for review. Following this, you will be assigned a representative who will assist you moving forward.
BONDED PROJECTS
We cannot fund bonded projects because the surety company that issues the payment or performance bond holds a legal claim to all project funds, which takes precedence over the factor's right to the receivables.
As a result, factoring companies often avoid bonded construction projects. If the contractor defaults, the factoring company risks being unpaid and facing substantial financial loss, as the surety requires those funds to finish the job.
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