Contractor Factoring Helping Small Business Owners
(For immediate release) Miami, Florida – Invoice Factoring Group's newly launched contractor factoring financing program is poised to help small / mid sized subcontractors and suppliers in construction industry.
One of the biggest challenges for construction subcontractors is waiting 30, 60 or even 90 days before the GC pays their invoices. As small business owners, they cannot afford to wait that long. Furthermore, few of them can really qualify for a business loan. However, factoring provides with an alternative business financing option to help contractors meet their business obligations and grow.
Invoice factoring accelerates slow paying invoices by financing them through a factoring company. The process is actually quite simple:
- The contractor or supplier delivers the product or service and generates an invoice
- The invoice is sold to the construction factoring company, who advances you money for it. This takes a day or so
- Once your GC or client pays the invoices, the transaction is settled. There is a small factoring fee that is charged for this service
“Construction factoring is a great tool for small and mid size subs and suppliers,” said Marco Terry, president of Invoice Factoring Group. “Using a factoring service is an easy way to finance a growing business”
Factoring accounts can be set up in days, and clients can usually start factoring invoices very quickly. The biggest requirement to obtain accounts receivable factoring, is that the contractors do business with reputable GC’s, construction companies or commercial clients.