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:

• Factoring Funding Sources (cut out the middle man)
• Invoice Buyers
• Medical Factoring Specialists
• Construction Factoring Companies
• Staffing Factoring
• Freight and Transportation Factoring
• Small Business Factoring
• Non recourse Factoring
• Preferred Transaction Types and Invoice sizes
• Broker Friendly Factoring Companies
• Master Consultants Willing to Mentor New Brokers
• Updated listings for over 60 factoring companies including  email, phone numbers, and websites (with easy one click access).

This directory alone could save you hundreds, even thousands of dollars when you go to sell an invoice or broker an accounts receivable funding deal.

Grab your copy today. Instant Download Only $29.96 (a 25% Savings off the Regular $39.95 Price)

As an industry, construction has always been difficult to finance. This is in part because each contract carries a lot of risk since many things can go wrong. Also, each contract has many players – the project owner; the general contractor; the subcontractors; the financing institutions; which increases financing complexity.

Although demolition companies are considered to be in the construction trade, they are not always as affected by their issues and can be easier to finance. Demolition work tends to be done at the start of the project and is not subject to the usual overruns of other subcontractors.

Most demolition companies tend to get paid 30 to 60 days after invoicing. This is a common business practice but it can create serious cash flow problems. Few companies can wait that long to get paid and still cover their own payroll, rent and business expenses. Unless the company has substantial cash reserves, it will run into problems.

Most company managers will try to cover the cash flow gap with a business loan. However, few companies can qualify for business loans in this environment. Institutions will only provide business loans to companies that are well collateralized, have strong management and have impeccable financial statements. Few demolition companies will meet this criteria.

There is an alternative that is available to most construction subcontractors. It’s called construction factoring. Construction factoring solves the cash flow problem by advancing funds against construction invoices. Instead of waiting 30 to 60 days to get paid, you get an advance from the factoring company. The transaction is settled once the GC or commercial client pays.

One major difference between factoring and a business loan is that the factoring company considers your invoice to be strong collateral, provided it’s from a good commercial client or GC. Factoring is dynamically tied to your sales, and grows as your company does.

Factoring can provide predictable cash flow to companies who cannot afford to wait up to 60 days to get paid by clients.

About Commercial Capital LLC

Looking for construction factoring? We can provide a competitive construction factoring quote. For information on our invoice factoring program, please call (877) 300 3258.

Article Source: Ezine Articles – How to Finance a Demolition Company With Construction Factoring by Marco Terry

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 specializing in construction factoring.

Historically, construction factoring has been used in the construction industry for years. The latest trends indicate that the recent economic downturn and tightening of the credit markets has been especially hard on the construction industry. Contractors are experiencing cash flow problems and having to focus on the new sustainable building code standards. The availability of commercial financing has been chaotic for the past year, so the situation is especially evident when seeking construction funding for commercial property.

Invoice factoring allows businesses to obtain funds based on their current accounts receivables. Construction subcontractors have to wait as long as thirty (30) to ninety (90) days to get paid for their outstanding invoices. Construction factoring advances funds against invoices and provides enough money to pay the bills.

Following are a few things you can do for starters, to prepare better if you are in the construction business. Before calling any business finance company, be sure to have your house in order, specifically:

1. Make sure you have up current, up to date financial statements. This includes a balance sheet, income statement/Profit & Loss, A/R aging report and AP aging reports

2. Handle any unpaid taxes as best you can,

3. Try to clean up your receivables – and quickly handle any accounts that are past due for more than 70 days.

Although there are no guarantees in this economy, these three steps that should help you better position your company for funding.

Also remember that the construction industry is one of several sectors that can benefit tremendously from invoice factoring. The sub-contractor, or construction company is no longer required to wait for payment before starting on the next phase of a project, or begin construction on a new project.

Factoring enables the sub-contractor or construction firm can realize quick turnaround of 48 hours on accounts receivable due for completed stages of a construction project. With construction invoice factoring, the construction company, or sub-contractor, can be paid virtually overnight for these invoices (accounts receivable) thus speeding up cash flow and improving the company’s ability to start immediately on the next phase of construction.

Author: Kristin DeAnn Gabriel – The Interface Financial Group (IFG) is North America’s largest alternative funding source for small business. The company provides short-term financial resources including construction factoring, serving clients in more than 30 industries in the United States, Canada, Australia and New Zealand. IFG offers expertise in factoring, accounting, finance, law, marketing and banking.

Article Source: EzineAricles.com – Construction Factoring Dips Along With the Construction Industry

FactoringInvestor (FI) caught up with Howard Chernin (HC) to fill us in on the accounts receivable funding business. Howard is the Sr. Vice President of Quantum Corporate Funding, LTD in Fort Lee, New Jersey and heads up the New Business Development division.

FI: What transactions will your company consider funding?

HC: Since 1991 Quantum has been factoring all types of receivables, except medical. We continue to target transactions ranging from $25,000 to $5 million plus.   We will still buy a single invoice rather than requiring a company to sign up for a long-term contract.

We are well known for factoring construction receivables, however we will consider all types of invoices.   Right now we are seeing quite a bit of manufacturing, staffing, and construction.

We are considering deals all across the country. In fact Tobi in our office moved to Arizona and is developing business in that part of the country.   The first step is to send us some basics on the transaction, including debtor information and aging reports, to gauge our interest level.

FI: How did you get your start in the factoring business?

HC: I worked in the corporate world for several Fortune 500 companies. I wanted to do something completely different and started a fire sprinkler company in the construction field. That led to my involvement in the factoring business with Quantum in 1993.

FI: What unique benefits does your company provide?

HC: ME! I’m the biggest benefit in helping consultants work with our company to factor receivables for their clients.

FI: How do you handle commissions to brokers or consultants?

HC: Our standard commission is to pay 10% of whatever Quantum makes for the lifetime of the account.

FI: What do you consider the best methods for finding deals?

HC: In today’s market it is all about referrals.   Talk to people and tell them what you do.   Think about your sphere of influence.   Everyone knows 250 people and they in turn know at least one person.   So now you have at least 500 people you are connected to on some level. You must constantly use your own referral base to build your business.

FI: What advice would you give to new professionals just starting out in the industry?

HC: The first and most important thing is to get on that phone and be able to take rejection.   If you can overcome rejection you can succeed.

Initially a consultant needs to be able to make 250 calls per day and learn from each call. Out of those 250 calls you might get 15 leads to follow up on.   Then follow the lead from the starting point to the ending point.   Understand what the factor likes and their requirements then participate in the funder/client conference calls and just follow the whole process.

FI: What is the most common business mistake you see people make?

HC: Consultants often get hung up on that one deal and just won’t let loose of it.   It is the old adage that you have to throw enough deals against the wall and have enough leads working in order to make something happen.

FI: Given the current economy, have you made any changes in the way you transact business?

HC: One of the most challenging aspects of being in the factoring business now is evaluating credit.   A company’s credit can change on a daily basis.

For example someone called me up this morning on a $500,000 receivable owed by a well-known company.   Now I need to double check on how that company is fairing in the current market. It is a very challenging economy and nothing is a given anymore. We must double-check everything.

Where can people contact you to obtain more information? Our website is a great place to start for factoring information and transaction guidelines.    You can also contact me at hchernin@Quantumfunding.com or by phone at 201-799-4342. Tobi Wilkins, VP of Sales and Marketing, is also available at tobi.wilkins@quantumfunding.com or 201-799-4348.

FI: Is there anything else you would like to share with our readers?

HC: We encourage the consultant to participate in our conference call with the client.   This is such an important part of the process. The factor and client can both understand what is needed from each other.   It also keeps the consultant in the loop and they know first hand what it takes to get the deal done.

There are two key words in our business; partnering and collaborating. You must be able to partner and collaborate with other people to succeed.

FI Summary: Helping businesses raise cash through factoring account receivables is one of many cash flow categories where consultants can earn commissions by referring transactions to funding sources.