Getting financing for a company in the construction industry is very difficult. In general, lending institutions are not comfortable providing business financing to small or midsized construction subcontractors. Demolition companies often have additional problems getting funded because many institutional lenders view them as riskier - due to the perception that they are often the first ones to do work on a site, but the last ones to get paid. The biggest cash flow problem Demolition companies, like most subcontractors, don’t get paid as soon as they complete their work. Rather, their contracts demand that the provide payment terms to the general contractor. These terms often give the GC up to 60 days to pay. Many general contractors, who … [Read more...]
The Unique Problems of Construction Factoring (And How to Solve Them)
Construction factoring can be every bit as tricky to navigate as it is lucrative. Ask a factor what industries they can fund, and nine times out of ten they are going to claim they can fund almost everything under the sun - everything, of course, except one little pesky industry: Construction. … [Read more...]
Directory of Factoring Companies and Service Providers – All New 2013 Edition
Sometimes it is not only what you know, but who you know. Knowing the right contacts not only makes things easier, it can make you more money. Gain access to our personal Rolodex of experienced factoring funders that took years to develop. Work direct with knowledgeable investors, educators, and mentors. Grab your copy of the 2012 Factoring Directory today! Order Now in PDF format for only $29.96 (25% Off $39.95 Retail Price) Business owners and factoring brokers will gain instant access to: … [Read more...]
Construction Factoring Dips Along With the Construction Industry
Very few companies are financing businesses in the construction industry today as the industry risk is still too great. Many general contractors and subcontractors are reeling from the effects of the building bubble. And to add insult to injury, many construction companies who obtained a business loan will probably, or already have found themselves out of covenant. This is due to falling sales. Simply put, banks won't let them tap into their lines of credit until their sales are back on track. What's more, even in the factoring industry, few companies dare to offer construction factoring since the risks of default are still high. However, in many cases a factoring company will be able to help. There are quite a number of firms … [Read more...]
Investor Spotlight: It’s Not Just Construction Factoring with Quantum Corporate Funding
Factoring account receivables is helping businesses through these tough economic conditions opening the door to earning opportunities for cash flow consultants. FactoringInvestor (FI) caught up with Howard Chernin (HC) to fill us in on the accounts receivable funding business. … [Read more...]