As Your Business Grows
We Deliver The FUNDS
We Deliver The FUNDS
Construction companies face everyday cash flow challenges with checks not coming in on time. We can help you manage the wild swings in cash flow by getting your money now; not waiting 30, 45 or 60 days. Your suppliers get paid quickly, so that you can negotiate the very best pricing.
Not all factoring companies understand construction receivables. Financing subcontractors and construction invoices involves many moving parts in the process. Unlike other industries, the receivables can potentially have supplier liens and we know how to address this type of situation.
Please Note: To qualify for approval, construction contractors need a minimum of one year in business and $100,000 monthly revenue from multiple clients.
1st Commercial Credit can provide you the cash resources that fuels your business through our commercial construction accounts receivable financing programs. We understand commercial construction and have financial sources that specialize in both commercial general and subcontractors funding.
Trouble Covering Payroll
Anytime your business has to offer credit terms, you need to be prepared for billing cycles that can put you behind on your cash flow. Payroll and 941 Tax obligations are crucial, including subcontractors you have to pay after they have completed their work. 1st Commercial Credit can help your construction company with the cash flow gap by funding your invoices after the jobs have been completed and helps your business stay current with payroll.
Turning Away Jobs Due to Lack of Cash Flow
With our factoring line of credit, you can now take on larger jobs that require more cash flow during the progress billing cycle. As you deliver the progress billing stages, we fund the invoices so you can continue to pay key suppliers and subcontractors as the job completes to its phases.
General Contractors Want to do Business with Financially Backed Contractors
We are finding that more general contractors want to deal with more financially stable construction contractors due to the double payment liability in supplier liens.
Our program is specially designed to finance contracts with local, state and federal government agencies. We fund on direct federal government contract receivables and from prime contractors and work particularly well with programs designed at increasing contractor/vendor participation including:
Banks only lend on the fixed asset collateral you offer and rarely provide any lending products in construction receivables. Invoice factoring allows you to get working capital on your invoices for delivered services within days and not months and months of waiting from the bank.
The difference between A/R financing and a bank loan is in A/R financing you use your customer’s credit line as leverage, not yours. A bank loan is based only on your assets and the ability to pay the loan back. When you factor, your growth potential is based on your credit worthy customers and it is virtually unlimited. The more credit worthy customers you sell the higher your credit line becomes.
The industries below are the most common but we can finance any type of construction related contract receivable.
Additional Construction Related Industries We Fund:
We create a winning situation all around. We utilize the good credit of the entity ordering the products or services to finance the contractor or vendor who otherwise cannot take on the contract.
The vendor wins by accepting and executing new business opportunities that will take them to the next level. The purchasing entity wins by accommodating greater diversity among its vendor base. In many cases, the purchaser has stated or mandated goals for participation among certain types of vendors – We help achieve these goals.
The program has been developed to provide working capital for contractors so they can properly execute their government related construction contracts.
In order to have a successful construction funding program, we have chosen to outsource this service to investment partners that understand the contractor industry.
They can track and monitor your contracts and invoices and act as your advocate. In this way, we are able to arrange project financing for you and facilitate your compliance with your funding. Our partners will finance your project and your payments will be made directly to them.
Together with our investment partners and disbursing agents, we offer a complete program that finances your project and helps manage your cash flow for the benefit of your customer, and, most importantly, yourself.
The Disbursing Agent helps you financially manage your project by making all payments to suppliers, subcontractors and payroll on your behalf.
All cash flow related to the job, including the loan and payments from your customer, is handled by the Disbursing Agent. This relieves you of much of the financial management burden of the project and ensures for all that necessary payments are made on time to avoid issues of mechanics’ and suppliers’ liens, loan default, etc. You will contract with them directly and make all requests and arrangements for payment of project expenses with them.
Our funding partners have years of experience in asset-based lending and contract lending, we work on your behalf to arrange your funding and facilitate its administration. Some features and benefits of the program may include monitoring and tracking your contracts and invoices. Others services may include packaging and communicating your requests for advances to the lender and communicate the lender’s requirements to the Disbursing Agent.
Recent Transactions:
$350,000 Financing Receivables | Cell Phone Tower Construction Company
