Over 18 Years in Business
Start Up Staffing Agency
Staffing Automotive Detroit
1st Commercial Credit recently funded a Cell Phone Tower construction company that has been awarded several tower projects. Many business owners are coming out of a slow summer due to Covid-19 with little or no revenues and are having difficulty raising working capital for payroll, suppliers and credit term sales. The telecom industry is known for the slow payment cycles and while most contractors have the working capital for payroll, waiting 60 to 75 days for payments to come in is not sustainable.
1st Commercial Credit has recently been expanding into this sector and funds accounts receivable for completed work phases and material deliverables. Factoring receivables on construction and progress billing for cell tower and telecommunications related projects involves more hands-on monitoring and many factoring companies do not fund this type of receivable.
Many clients try to do most of the work themselves but risk may increase when sub-contractors and suppliers are utilized on the project. Potential liens may arise on the receivables due to non-payment from the contractor.
The initial factoring facility was set up for $350,000 and should be able to satisfy the client’s need for the near future.
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