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.
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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.