Business Funding Made Simple
Factor USA
Financing for Contractors & Sub-Contractors
Through IACFB Nationwide
When discussing financing efforts in the construction sector, we have worked with three possible types of clients. They are:
- SUB-CONTRACTORS: those actually performing the work on a job site and being paid for that work by a General Contractor
- GENERAL CONTRACTORS: those seeking to get advances on progress payments made to them by project owners or financing banks
- SUPPLIERS: those small businesses that supply materials to the job site. This is everything from fill dirt, concrete, lumber and trusses to bulk hardware.
Of the three groups, sub-contractors tend to be the most common clients of Factor USA. It is so common for sub-contractors to find themselves in need of financing due to unforeseen weather conditions, slow delivery of materials, and other events that slow down the progress payments for the general contractor, thus slowing down payments to sub-contractors.
Just a Few of the Types of Construction
Sub-Contractors We Have Funded
Welding
Services
Framers and
Drywallers
Site
Preparation
Electricians and
Installers
Masonry
Contractors
Typical Funding Requirements
Construction is one of the slowest-paying industries. It is not uncommon for sub-contractors to wait nearly 80 days on average for payment on invoices. Sub-contractor financing fits in two (2) broad categories, which would be financing for commercial construction or residential construction. For sub-contractors doing work primarily for residential buildings, the most common financing route is traditional term loans through the SBA 7(A) Loan Program or similar. Most sub-contractors will look at invoice factoring for those working B2B and primarily in the commercial arena due to its flexibility and ease of credit access.
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At Factor USA, we are proud members of the IACFB, the International Association of Commercial Finance Brokers and as such, have access to our association’s Directory of American Factors and Lenders, the largest database of factors and alternative commercial finance providers available in the industry.
