There are a lot of challenges which are posed in front of a construction company as the field is versatile, dynamic and particular. It goes without saying that delayed payments or failed ones are undoubtedly amongst the most complicated situations to be forced into. A short delay of a few days could significantly disrupt the supply chain, let alone a massive one of more than a few months.
The truth is that business owners in the construction field would very rarely receive their payments from different customers on time. This is something which could seriously affect your business. This is where construction invoice factoring comes into the picture.
What is Construction Invoice Factoring?
It’s quite simple, really. This is an arrangement which is specifically designed for construction companies and it allows them to receive the majority of their account receivable value right away without having to wait for their customers.
This is an undertaking which is available to business of different sizes from small contractors to multi-million dollar enterprises and it’s something which is capable of providing you with serious assistance.
In its essence, when you use construction invoice factoring, you would be capable of receiving an advance on the value of invoices which are outstanding. Rather than waiting for a few months to be paid, you would be able to get your advance within a few business days or even within a few hours.
This is an arrangement which gives you access to the money you need for your company to run smoothly even though your clients may not have yet paid you. What is more, factoring also provides you with the convenient opportunity to ensure that you are focused towards the growth of your company instead of having to worry about its funding.
An additional benefit is that construction factoring doesn’t require any application fee, minimum volume of the invoice and no long-term contractual obligations. You can literally get an advancement on your payment within a few hours to a day at most.
Why Consider Construction Invoice Factoring?
If you want to receive an advance on your account receivables and get a hold on your cash flow problems, you can take advantage of this service. Keep in mind that one late payment might cause you to miss a certain payroll, to skip a certain utility payment or to postpone a necessary purchase, for example. For a lot of the businesses, these are vital expenses that can’t really wait. You can use construction factoring in order to get an advance on the cash that you need in order to continue with the operation of your business without any further interruptions.
Who Can Benefit?
In the construction field specifically, a lot of different businesses can easily benefit from factoring. Of course, an arrangement could be made to provide special assistance to certain entities such as:
- Small businesses which have poor credit history: if you’ve been unable to qualify or a bank loan, you could easily qualify for factoring.
- Companies with certain seasonal margins of profit – these could use construction factoring in order to help them get through the times of the year which are slower.
- Newly formed companies: if you have yet to establish a line of credit with a lender that you’re usually going to work with, you might be a prime candidate for factoring since the business owners won’t really need to pass a credit check.
Things to Consider
It’s obvious that there is quite a lot of merit when it comes to construction invoice factoring and that it could be particularly beneficial.
However, you’d have to be aware of quite a lot of things. The company that’s going to fund your invoice needs to be reliable and you need to make sure that everything is handled as per the highest industry standards. You ought to consider the factoring company as reliable partner that you can truly depend on. This is why you have to make sure that you do the right thing and contact an appropriate company.
Carter Funding Corporation – An Obvious Choice
Carter Funding Corporation has been a leader in providing financial solutions for its clients for more than two decades. Operating since 1994, the company has the necessary answers to provide a solutions to the cash flow needs of its customers.
A significant line of the company’s clients comes from the construction field as oftentimes this is a niche which requires immediate reaction. Delays are not tolerated and are capable of causing tremendous complications.
CFC has the necessary experience and has worked with startups which are just emerging on the market and big companies who have found themselves in the trouble of delayed supply chain payments.
Carter Funding Corporation is proud to bring working capital to the companies which is necessary for them to sustain their growth rates and to prevent any losses in case banks refuse the issuance of loans to meet their particular demand.
There are quite a lot of perks when it comes to working with CFC, including:
- Same Day Funding
- Factoring Rates which Start at 1%
- Up to 90% of Advance Payments on Your Invoice
- 24/7 Reports Access Online
All in all, we live in a very dynamic entrepreneurial environment and it’s quite obvious that you need to make sure that everything is under control throughout the majority of time. This is something that you need to take into consideration.
However, sometimes things are going to go out of your control and you wouldn’t be able to anticipate every single complication. A delay in payment could happen to any company and when it does, it could potentially cause quite a lot of troubles. This is something that you should most definitely take into consideration.
Instead of wondering how to deal with the situation, you could easily take advantage of comprehensive invoice factoring and get the necessary working capital upfront, without any hidden costs, fees or obligations – it’s that easy!
Call Carter Funding Corporation now and get a hold on your finances once again!