A cash flow squeeze can be a common problem in the construction industry, and The Invoice Bankers may be able to help. You must pay your employees without fail on a regular basis, while suppliers and subcontractors are also clamoring for payment. This would not be such a problem, except that your customer, whether a General Contractor or an end-user, often does not pay you very quickly. Slow payment in construction is due to a number of factors, such as waiting for checks to be paid up the line, reviews and inspections, sign-offs by architects, and the many other reasons you have heard.
Unless you are buying heavy machinery, it is difficult to obtain financing from banks and other sources in the construction industry. Equipment financing is more readily obtainable because you have a valuable piece of equipment to put up as collateral to the lender. The beauty of factoring is that you can obtain financing even if you don’t have any hard assets such as vehicles and construction equipment. The Invoice Bankers is able to provide money to your business based on your accounts receivable, that is, your invoices and draw requests to your customer. We are able to work with you on long-term contracts as well as with jobs billed upon completion. Unfortunately, we are not able to provide funds through factoring if your customer is a homeowner or other private individual, we only can do so when your accounts receivables are from another business.
First of all, The Invoice Bankers is one of the very few factoring companies in the U.S. that is able to provide funds through factoring to the construction industry. Second we have many years experience working with subcontractors and general contractors and have an understanding of the environment you work in and the problems that you face. We do need to mention that there are circumstances where we cannot provide any capital, but we are glad to discuss your situation and see if we can help with your cash needs. The key things we look for are whether your customers have good enough credit to pay your invoices, and whether they are happy with your work.