Construction Factoring Program Launched
(For immediate release) Invoice Factoring Group announced the launch of its construction factoring program. This business financing program allows contractors to get paid on their invoices in as little as two days, enabling them to meet every day expenses and grow.
One of the big challenges for contractors is that they get paid in 30 to 90 days. This makes it tough on them to pay suppliers and employees, said Marco Terry, president of Invoice Factoring Group. Factoring their construction invoices allows them to get paid in as little as two days and makes their life a whole lot easier, Terry later added.
Construction factoring is a subspecialty of invoice factoring, a flexible way of financing a business. As opposed to extending a business loan, the factoring company buys slow paying invoices for immediate cash. This eliminates the long payment wait and provides the construction company or contractor with the liquidity it needs to operate and grow their business. And, as opposed to business loans, factoring can be obtained in days.
Accounts receivable factoring works as follows:
- The contractor or sub delivers the product or service and invoices for it
- The invoice is sold to the factoring company, who advances up to 75% of its value (1st installment)
- The factoring company waits to get paid while the contractor gets immediate use of the funds
- Once the factoring company is paid, the transaction is settled and the contractor receives the remaining 25% (2nd installment), less a small fee
Factoring construction receivables is a great way to finance companies in the industry. Our services work for companies in HVAC, asphalt, concrete, electrical and roofing, as well as many others.