Construction

Construction factoring is a specialized type of invoice factoring adapted to work in the construction industry. It helps subcontractors improve their cash flow by financing their net 30/60 invoices from commercial clients and General Contractors (GC). This article explains how construction factoring helps you, how it works, its advantages, and its limitations. The article will […]

Undercapitalized utility construction companies can experience financial problems when they give payment terms to clients. These terms are often non-negotiable and allow clients to pay invoices in 30 to 60 days. This article discusses two solutions: invoice factoring and construction factoring. Both solutions can be used to finance slow-paying invoices and improve cash flow. We […]

Managing the cash flow of a directional boring/directional drilling company can be challenging. Like most companies in construction, they face a common cash flow dilemma. The company has to pay expenses quickly but must also wait up to 60 days to get paid by clients. This situation can leave directional boring companies with a cash […]

Paying employers and suppliers on time is a major concern for small roofing companies. However, making timely payments can be difficult because commercial clients and general contractors (GCs) pay invoices in 30 to 60 days. Offering net payment terms can create cash flow problems for businesses that aren’t well capitalized. This article explains how construction […]

Many construction subcontractors have trouble paying employees or suppliers on time. Often, they have cash flow problems because clients pay invoices in 30 to 60 days while suppliers ask for quick payments. One way to fix this working capital problem is to use a revolving line of financing. This article explains how construction factoring can […]

Progress payments are common in the construction industry. They are also one of the reasons why many factoring companies cannot work with subcontractors in the construction industry. This article discusses how progress payments work, why they are a problem for some factoring companies, and how construction factoring overcomes those issues. We cover: 1. What is […]

Most construction subcontractors are familiar with the concept of retainage, also called retention. Basically, their general contractor (GC) withholds 5% to 10% (varies) of their payments until the project is completed. General contractors use this practice because withheld funds can be used to fix any issues with the work. Additionally, withheld funds are an incentive […]

Construction factoring is a specialized type of invoice factoring adapted to work in the construction industry. It is very similar to invoice factoring, though it has some key differences. This article covers the main differences between both programs. It helps construction subcontractors determine if construction factoring is right for them. Read “What is construction factoring? […]

A common problem for commercial landscaping companies is that corporate customers usually pay invoices in 30 to 60 days. As a landscaper, you often have to provide payment terms to your clients if you want to win their business. However, offering payment terms can expose you to cash flow problems. This article discusses how to […]

Working with builders and general contractors (GCs) has advantages. They are often recurring customers who place larger orders and can help grow your business. However, these customers usually ask for net-30-day payment terms. This request is a challenge because offering payment terms can lead to cash flow problems if not handled correctly. This article presents […]