You don’t have to work in construction to know that the industry has been hit particularly hard by the Great Recession and improvement has been moving at a molasses-like pace. Though home prices are rising in some areas, new growth in residential and commercial building remains largely flat. Those in construction, therefore, are facing the double burden of both having a hard time finding customers and having a hard time securing construction financing. For many general contractors and subcontractors, construction business loans are difficult to come by as the industry’s natural business cycle is one of peaks and valleys. Moreover, construction funding from a corporate bank may not be available fast enough to take advantage of new building projects.

Construction Factoring Can Help Builders Secure Regular Cash Infusions

Those in construction are also tasked with having to pay their workers and suppliers quickly though they themselves often wait 60- or even 90-days to get paid. This routine delay can cause cash flow problems, prevent business growth, and even result in the demise of the general contractor or subcontractor’s business if not addressed in a timely manner. Construction factoring companies are familiar with the unique landscape and challenges of those in the industry and can work with you to secure you money quickly so you can maintain working capital, pay your workers and suppliers and even have enough cash on-hand to move on new opportunities. Construction factoring can work for general contractors and subcontractors in all types of specialties, including:

• Architects
• Asphalt companies
• Cable companies
• Carpenters
• Carpet installers
• Ceiling/drywall
• Electrical contractors
• Engineers
• Excavators
• Expediters
• Fire sprinkler contractors
• Flooring installers
• General contractors
• Home appraisers / inspectors
• HVAC
• Landscapers
• Manufacturers
• Paving
• Plumbing
• Roofing
• Security firms
• Space planners
• Steel fabricators
• Suppliers
• Tile contractors
• Underground utilities
• Utilities contractors

Construction Factoring Companies Speak the Industry’s Language

An experienced construction invoice factoring company will understand the unique legal and operational challenges of the industry, such as how business can be booming for a period of months and flat for another few months later. A company will assess your company and your clients based on your most-recent invoices, when possible, and work with you to develop flexible payment plans. So if your business is booming now, you can use construction factoring to make sure you are financially covered for the slow times should they occur. This continuity of cash infusions with factoring receivables can ensure that suppliers, workers and bills are paid on time even if current business is slow.