We provide money to meet payroll, buy materials or equipment, pay subcontractors, and be able to take on big new jobs.
Whether you are a General Contractor or Subcontractor, you know that receiving payment on time for any project is rare. It may take several weeks after the job is completed or until another contractor that you are working for is paid before you receive your money.
Contractors that we can help:
Subcontractors paid by large general contractors.
Subcontractors paid by the government.
General contractors paid by the government.
General contractors paid a large end-user.
Any government-contracted project, such as public schools, courthouses, government administration buildings, construction at city, state or national parks.
Commercial projects, retail, office, industrial projects with major potential tenants.
Multifamily projects, apartments and townhomes. (no single family projects).
The benefits of selling your progress billings include:
Stimulated cash flow.
Eligibility relies on credit rating of your customers, not yours.
Selling one or hundreds makes cash flow accessible.
Once set up, your submission of the invoice gets quick results.
Month to month with no minimum or maximum amount is flexible.
Selling Your Progress Billings is Unlocking the Cash in Your Company Without a Loan!
Simply put, accounts receivable funding is the purchase of accounts receivable from a business at a slight discount. We will purchase your progress billings within 48 hours and advance up to 85% of the invoice amount. Then, when the customer pays the invoice, you receive the remaining balance, minus a nominal fee. This is NOT available for contractors building single family homes.
It is designed for businesses that need money immediately, and can't afford to wait 30, 60 or 90 days for a customer to pay and invoice. In most cases, either the business owner's "back is against the wall" and can't meet cash demands (because, for example, customers are slow to pay or income is low due to a seasonal slowdown), or a business is growing so rapidly that its cash flow can't keep up with its growth.
Widely accepted as an alternative financing source, accounts receivable funding is used extensively in almost every industry by companies that need immediate cash — either for growth or for survival — and may or may not qualify for traditional loans or grants.
What are the benefits of selling? You may sell ALL of your receivables, or only the ones you choose.
Stop selling any time you choose without termination penalties.
Start again any time you need the service.
By receiving cash within 24 to 48 hours after submission, you can stimulate cash flow.
All of our note and invoice purchasing options and programs are available to meet your cash needs.
Qualifying for traditional bank loans can take months and has to follow strict credit rules. Factoring gives you the cash flow you need now. Remember, borrowing money creates debt, factoring does not create debt. Getting a loan to meet cash flow needs increases your expenses by the amount of interest and reduces the bottom line value of your business. Loans require collateral. Factoring is not a loan, so there is no debt to repay. Your balance sheet is more attractive.
More and more companies in every industry are discovering the fast, convenient solution to their cash flow needs is factoring. Download our simple worksheet below and fax or mail it to us for a free, no obligation valuation.
Traditional financial institutions may have tuned out this industry because of lien laws and the possibility of disputes with a contractor's work. Our investors have found ways to fund construction progress billings and decrease their own risk.
If you have creditworthy commercial construction receivables, they have money available right now. Some ground rules apply:
On your initial funding of existing invoices, the factor may or may not agree to purchase accounts that are already more than 30 days old.
If your company is a sub-contractor on a job, qualifying for factoring will be dependent upon the cooperation of your GCs (if you are operating under a contract that contains the usual "pay-when-paid" clause).
Your company can only factor invoices for work that has been completed or for progress payments for which you have met the stipulated requirements.
Only invoices created as a result of commercial construction can be factored.
You cannot factor invoices on jobs for which your company is bonded.
Once terms of a factoring agreement are agreed to, the construction factor may search local court records for existing liens, and will also run credit reports on your customers.
Even though the factor extends cash based on the credit of your customers, the factor may also run credit on your company. Your company's credit is not nearly as important as your customer's, but it is sometimes a consideration.
The construction factor needs to know, up front, if there are any existing liens against your company's receivables. This includes: loans, lines of credit, tax liens, judgments, as well as pending litigation.
If you company is a GC or a Prime contractor on a job, the factor will want to see your contract to determine exact amounts to be invoiced, the invoicing schedule, and the submission, approval, and payment process.
In most cases, your company needs to be billing at least $50,000 per month to be considered a likely factoring prospect. Exceptions are often made for companies anticipating significant growth in the next 3-6 months.
Any and all information you submit to Cash Flow Improvement Specialists, Inc. will be held in strict confidence. We will never release, sell, or trade E-mail or private information for any reason. All order transactions are processed on our secure encrypted servers. All documents faxed to our office arrive in an extremely secure location, not available to the public.
IMPORTANT NOTICE!!! CHECK ACCEPTANCE POLICY. In the unlikely event that your check is returned for insufficient or held funds, we will debit your checking account electronically for the face amount of the check plus the state allowed fee. This Policy allows us to resolve the problem without reporting you to a credit bureau and harming your credit rating. The transaction will appear on your bank statement, and no one will have to contact you about payment.
Your submission of a cash flow worksheet and the consulting is free. You or your company are under no obligation to accept any cash offer we make for the funding of an accounts receivable financing (factoring) or purchase order funding worksheet, or the like.
Cash Flow Improvement Specialists and United First Financial does not provide accounting, tax, legal, real estate, mortgage or investment advice on this Website. Interested parties should seek and consult with persons and entities licensed and qualified in those areas for advice relating to those matters. The information contained herein is general and may not apply to your situation and does not substitute for the advice of an attorney.
Always consult an attorney with regard to your legal rights and obligations. Neither any page on this Website, text, graphics, downloadable information or form, products, services nor affiliated Internet Websites constitutes legal or tax advice. Always consult with a qualified tax advisor regarding tax consequences. The information contained on this Website does not constitute an offer or a solicitation to lend or extend credit.
All content is protected by United States copyright and other intellectual property laws and may not be reproduced, rewritten, distributed, redisseminated, transmitted, displayed, published or broadcast, directly or indirectly, in any medium without the prior written permission of Cash Flow Improvement Specialists, Inc.
