Factoring for Construction Subcontractors
Subcontractors usually get paid on a monthly or so basis from General Contractors. Trying to pay employees, suppliers, and other business expenses occurring on a daily basis can be challenging. Factoring for construction subcontractors is a debt free solution that covers the gap between being paid and paying expenses.
Factoring for subcontractors is a little more challenging than for other industries. Therefore, only a few Factors provide such a service. The General Contractor will have to sign a waiver of setoff insuring that a reduction of payment by the GC will not occur. Once the GC pays on an invoice, then a conditional mechanic's lien release is provided. When a subcontractor submits an invoice for factoring, they also will need to submit a list of suppliers they owe for the work accomplished. The Factor will pay the suppliers from the advance.
Even though factoring for subcontractors can be challenging, some Factors specialize in providing this type of financing. Assured Capital Funding, LLC provides a premier factoring facility that meets this challenge. Contact us today to learn more about how this debt free form of financing can be a great decision for you.
Some subcontractors bid on work by government agencies. They also do work for businesses that do not involve a General Contractor. All of these types of accounts can be handled under one factoring arrangement.