Choosing the Right Construction Factoring Company Is Essential to Cash Flow Success
What Is Construction Factoring To Be Precise?
Construction Factoring as the name implies is a financial tool that allows you to convert your outstanding or unsettled construction invoices from your business general contractors into immediate cash. Instead of having to wait for 30, 60, or even 90 days, you instantly get hold on to a majority chunk of the money that is being tied up in your unpaid invoices from your clients.
How It Helps You Grow?
Since maintaining an effective cash flow lifecycle is of critical importance in the construction industry, selling the construction invoices prior to their maturity to a construction factoring company. It can dramatically boost your cash flow and working capital. It will ultimately help you grow and expand your business faster. There is no denying the fact that Construction Factoring has turned into a profitable financial tool. Especially for the entrepreneurs and SMBs looking to maintain and grow their business.
Are you considering options for partnering with a Construction Factoring Company to get the best factoring deal? Then, Troy Business Group can make your factoring journey easy. The company offers cost-effective and reliable factoring products to people looking to get fast and instant access to money.
The Growing Construction Factoring Industry in the US
The US lending factoring market is getting bigger and better. Moreover, the demand for invoice factoring services is increasing with the passage of each day. The increased business activity is the predominant reason why construction factoring is a booming business in the US. When it comes to choosing the construction factoring company, it is critically important to partner with a credible factoring company such as Troy Business Group. Troy Business Group can approve your factoring loan or money in a timely manner. The company that can turn your construction invoices into the same-day capital must be prioritized over any other.
Bank Loan vs. Construction Factoring Loan-Which One is Better?
Acquiring loans from conventional banks is one of the most challenging tasks for a business. The banking loans involve a traditional set up of lending. In traditional banking, loans are acquired on inflexible terms of payment and higher interest rates. Since banks have red tape policies and have a bureaucratic lending structure. So, it gets quite challenging for SMBs and entrepreneurs to acquire loans instantly for improving their cash flow.
Can you imagine obtaining a quick construction loan without any collateral? Perhaps, you won’t be able to. Even if some private bank agrees upon lending you a loan on someone’s personal security, it may take up to several weeks or months to get access to a construction loan. This indicates that the time-sensitive capital requirements cannot be fulfilled via bank loans.
On the contrary, Construction Factoring loans are relatively easier to get. In addition, it gives you an instant hold on to the money that is tied up in your outstanding construction invoices. This indicates that SMBs and entrepreneurs wouldn’t have to wait for 30, 60, 90 days to get their money that got stuck. They would get instant access to money. So, it would ultimately help them boost their cash flow and working capital.
Construction Factoring is Surely Better!
In order to get your construction factoring loan or money approved within a couple of days, you must be a subcontractor, not a general contractor. Also, your invoices or receivables must be free of tax (liens). Moreover, your company must not have major legal, and tax problems. And above all, you must have authentic invoices ready if you expect to get instant access to money.
Who Uses Construction Invoice Factoring?
Invoice factoring or construction factoring to be precise is suitable for people who are in need of fast cash. Subcontractors or individuals involved in the subcontracting industry such as construction raw material vendors, suppliers and those involved in the supply chain. Some of the subcontractors that can benefit from our services include Plumbing Subcontractors, Landscapers, Roofers, Excavators, Drywall installers, Lumber distributors, HVAC Contractors, Electrical Contractors, Paving companies, Construction staffing-to name a few.
Additional Benefits of Selling Your Construction Invoices to a Third Party Factoring Vendor
Besides boosting your working capital for helping you meet your day-to-day cash flow and financial concerns. The money acquired via construction factoring can help you hire new employees to complete jobs faster, purchase more logistics vehicles, buy new inventory, machinery, and equipment, increase your business operations and offices. Furthermore, it grows your marketing activities for attracting new construction clients and more.