Construction Invoice Factoring: Why It Helps To Use This Service

In the construction world it's no secret general contractors are sometimes slow to pay their sub-contractors. It's not their fault, they are waiting for the money to come in from the owner of the job. Often times, the general contractor will set up the terms of payment as a "Paid when paid" or in some instances, it's a "Pay if we get paid" type scenario. They will also set the contract up where they pay upon completion. Great for the general contractor, bad for the sub. This means the sub-contractor will have to float all the overhead expenses until the end of the project. The two biggest overhead expenses are the materials, and payroll.

Most sub-contractors have a line of credit with their supplier. Some of the lucky few have the working capital to go ahead and pay for the materials up front, thus getting a discount on the materials. Some suppliers will still offer a discount if it's within 30 days. Using an invoice factoring company will allow you to pay down your credit line with the supplier, getting the discounts, and offsetting the cost of the invoice factoring fee.

Payroll is often times the biggest problem area for sub-contractors. It's their biggest overhead, and if they aren't paying their crews, there's a chance they could walk off the job which creates a massive headache for the sub, and the general contractor. I talk with subs all the time, and what I'm hearing is "Man I'd love to rest easy as night knowing I can make payroll every week." Having that piece of mind goes a long way, and using an invoice factoring company to help cover payroll throughout the project can be a big stress reducer.

Construction invoice factoring is a great financial solution for your working capital needs if you are a sub-contractor. If you are just getting started on a new job, you can turn your aged accounts receivables into cash to pay for your next project. If you are in a current project, and you are running thin, this is also a great solution. If you are growing so fast the bank won't extend a larger line of credit, this is a great solution.

At Atlanta Finance Group we know which factoring companies truly know construction. We will get you several different quotes so you can choose which company is the best for your business. We do not charge for our services. Give me a call today if you want to know how we can help your company. My direct number is 813-300-0790. My email is AtlantaFinanceGroup@gmail.com. I hope to hear from you soon!

Construction Invoice Factoring