Built It Tall and On-time with Construction Financing from Business Factors
Some industries are more challenging to finance than others, and construction and building is one such sector. Construction is a high risk, asset-heavy enterprise often involving a wide range of players such as contractors, subcontractors and outsourced workers.
Many different businesses commonly support one large project, which makes for higher risk for the financier. Moreover, when compared to other markets, pricing for the commercial and residential buildings can fluctuate wildly. For all these reasons and more, construction financing can be difficult to find.
A Variety of Firms Can Benefit from Construction Factoring
Business Factors provides construction funding to wide range of construction companies and builders, including general and specialty contractors, carpenters, roofers, fabricators, plumbers, electricians, architecture companies, suppliers and more. It also offers construction equipment financing that is used to purchase assets such as equipment.
Business Factors provides fast and competitively priced construction financing so contractors can get the capital they need. Construction funding can be used to:
- Purchase or lease equipment and tools, which can be a major cost to builders.
- Buy bulk quantities of raw materials, including wood, clay, sand, rocks, cement, brick and more.
- Recruit, hire and cover payroll costs of skilled and unskilled workers for long- and short-term construction projects.
- Pay for permits, insurance costs, license fees and other legal documents associated with building projects.
Construction Financing Makes Sure Workers Get Paid
Payroll accounts for a huge percentage of any construction company’s budget. Whether the job is to construct residential homes, build a brand new structure or renovate an existing commercial building, many workers from different specialties must be hired to complete the job. Trade workers and general laborers can take a large bite out of a project’s budget. It doesn’t help that workers must often be paid way before the builder starts making money on the project.
Resolve the Cash Flow Crunch with Construction Funding
Moreover those in construction must invest up front in physical assets before they get paid for the building project. This gap of outgoing and incoming funds creates a huge working capital dearth leaving many construction companies without the liquidity they need to cover high-cost, day to day operating expenses. Building and construction companies often run into cash flow problems as a result of being asset-rich yet cash-poor.
Cash flow issues due to insufficient working capital can quickly bring a building project to a halt. If a builder no longer has funds to pay its workers, projects will stall pretty quickly and delays will only increase the total cost of a project.
Construction factoring can prevent cash flow problems before they start by expediting the invoicing and receivables collection process. With construction funding, the builder can get paid in a few business days so it can have cash in hand to cover day to day operating expenses.
To qualify for construction financing, your business needs to have clients that have solid credit scores and a recent history of paying its bills on time. Because construction factoring is based on the value of your clients, you can get capital right away even if your credit is so-so or unestablished.
Construction Factoring Funds Project-based Jobs
Because construction factoring is a one-and-done business transaction, it is perfect for project-based undertakings. For each invoice you submit Business Factors will vet and run a credit check on that invoice so it doesn’t matter if you routinely submit invoices for different companies. You can however minimize your total construction factoring costs by using the same client repeatedly but this is not necessary. Once the invoice has been paid, it becomes a completed transaction with nothing more to pay back.
Construction Financing and Liens
Even if you have a lien with another financial institution, Business Factors can still work with you to provide construction factoring. Bolstering your business cash flow and enhancing working capital can become even more important when you have current liens including mechanic liens.
Business Factors will take steps to partner with third-party institutions to arrange an agreement where both parties get paid on time. Many banks won’t do business with construction companies that have liens or mechanics liens due to the challenges they pose.
Construction Loan Financing Is Also Available
For non-construction businesses, Business Factors offers construction loan financing to enable businesses to purchase land or property and build or expand a new or existing office facility. Businesses in these situations will often head to the bank for their building, renovation or construction financing needs. Yet Business Factors also offers construction loan financing at rates that are comparable to banks. Depending on the situation, you may be able to secure construction loan financing in a faster timeline and with terms that are more favorable than a bank.
See why construction invoice factoring has never been easier
Running your construction business, regardless of its size, is difficult when you have unpaid invoices and need the money to pay workers, buy equipment or finish projects.
Commercial construction financing through traditional sources can often be difficult to obtain, especially if you have exceeded your other funding options.
What makes Business Factors today’s best construction funding resource?
Business Factors & Finance specializes in providing alternatives to traditional construction funding. Our specialty is factoring your unpaid invoices, so you get your money now when you need it — and get it fast. Turn to us now for:
- Construction equipment financing
- Construction funding for worker payroll
- Construction business loans for materials to finish projects
- Commercial construction financing to take advantage of wholesale discounts
Get construction financing unlike any other
When you have unpaid invoices but need the money now, construction financing from Business Factors & Finance solves your problem — and fast.
- Receive approval of cash for your unpaid invoices in 24 hours or less, not in weeks or months as it is with banks.
- Get an advance of up to 96% of the face amount of your accounts receivable.
- Experience a fast and easy construction funding set-up process.
- Enjoy low, money-saving fees.
- Know that BusinessFactors.com will do all the collections of your unpaid invoices.
- Eliminate costly upfront fees and save time with simple construction financing qualifications.
- Request our friendly, professional, confidential consulting anytime.
The financial strength of your customers, not your personal FICO and/or business credit score, is all it takes to get construction financing from Business Factors & Finance.
Receive friendly, professional, confidential construction factors consulting
Now you don’t have to balance making payroll against buying materials and equipment. By factoring your accounts receivable with BusinessFactors.com, you can get money when you need it.
Apply online or learn more about Construction Factoring:
- 10 Causes and Cures of Construction Financial Anxiety
- Construction Factoring Available to Pay for the Bullet Train
- The 101 of Construction Factoring and Building Projects
Other Industries We Serve: