Construction Invoice Factoring
The construction industry is full of momentum. You secure a project, put together a skilled team, and get to work. But between project timelines and slow-paying clients, your cash flow can become stagnant. This lag can hinder your ability to pay workers and suppliers and secure materials for the next project, stalling your progress.
This cash flow lag can disrupt your entire operation. It can make it difficult to cover payroll, purchase materials, or take on new projects.
Construction invoice factoring from SMB Compass can help bridge this gap and keep your business running smoothly. With our factoring solutions, you can get access to a significant portion of your invoice amount quickly, often within 24 hours.
This frees up much-needed cash flow, allowing you to focus on what matters most – building high-quality projects and growing your business.
Ready to Apply for Construction Invoice Factoring?
What is Construction Factoring?
Construction factoring is a helpful tool for construction contractors who deal with invoices and need a faster way to get paid. Instead of waiting for customers to pay their bills, which can take weeks or even months, construction factoring allows you to sell your invoices to a factoring company at a discount.
This company then advances you a portion of the invoice amount upfront, typically around 80-90%. Once your customer pays the invoice, the factoring company gets the full amount and deducts their fee from the remaining balance. This frees you up from chasing customer payments and gives you the cash flow you need to keep your business running smoothly.
How Factoring Construction Invoices Work
You complete a project and send an invoice to your customer.
You sell the invoice to a factoring company.
The factoring company advances you a portion of the invoice amount.
Your customer their dues.
You’ll receive the remainder of your invoice minus the factoring fee.
Invoice factoring can be a good option for construction companies of all sizes, but it's especially beneficial for those who are just starting out or who are experiencing slow payment cycles. It's important to compare rates and fees from different factoring companies before you decide on one.
Ready to apply for Construction Factoring?
Why Should You Finance Your Construction Invoices?
Construction projects are notorious for extended payment cycles. Clients may take weeks or even months to settle invoices, leaving your company waiting for critical funds to operate. Invoice factoring offers a powerful solution to bridge this gap and unlock the full potential of your business. Here's how:
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Improved Cash Flow
The most immediate benefit is the injection of cash into your business. By receiving a cash advance on your unpaid invoices, you gain access to a significant portion of the invoice amount upfront. This steady cash flow allows you to pay employees, suppliers, and other bills on time, without relying on delayed payments.
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Fuel Business Growth
Consistent cash flow is the lifeblood of growth. Invoice construction financing allows you to take on new projects, invest in essential equipment, and expand your team. This flexibility lets you seize opportunities and scale your construction business without being restricted by outstanding invoices.
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Enhanced Project Management
Predictable cash flow translates to better project planning and execution. You can confidently purchase materials, schedule labor, and meet deadlines without worrying about cash flow disruptions. This leads to smoother project management, increased efficiency, and potentially higher customer satisfaction.
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Streamlined Operations
Instead of dedicating resources to chasing late payments, invoice financing allows you to streamline your operations. You can automate the financing process and free up your valuable staff to focus on core business activities. This translates to cost savings and a more efficient organization.
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Early Supplier Discounts
With improved cash flow, you can leverage your buying power to negotiate better deals with suppliers. Supplier early payment discounts can translate to significant cost savings for your construction business.
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Flexibility in Financing Options
Invoice factoring offers various options to tailor the solution to your specific needs. You can choose to finance all your invoices or just a select few, depending on your cash flow requirements. This flexibility allows you to manage your working capital effectively.
How to Qualify for Construction Factoring
If you're interested in getting invoice factoring for your construction business, here's what you'll generally need to qualify:
1+ years in business
Minimum $20k/mo in revenue
Minimum credit score of 650 or higher
One-page application
3 months of bank statements
A traditional bank loan can be a slow and complex process for construction companies. Here at SMB Compass, we understand your industry's unique needs. Our construction factoring solution is designed to quickly provide you with the working capital you need.
Our requirements are tailored for construction businesses, making the approval process smooth and hassle-free. We don't get bogged down in lengthy applications.
We understand your time is valuable. Our streamlined assessment focuses on what truly matters – your agency's revenue and ability to place qualified candidates. Let us handle the financial complexities so you can focus on building a successful construction company.
How To Apply for Construction
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1. Quick & Simple Online Approval
Our secure online form takes just minutes to complete. To get a clear picture of your operation, we'll ask for essential details about your construction company, including revenue figures.
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2. Skip Mountains of Paperwork
We only require a few key documents, like bank statements or tax returns, that you can upload securely through our system. We prioritize a smooth and efficient factoring process, minimizing the hassle for you.
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3. Rapid Funding Decisions
We understand that time is money in the construction industry. That's why we prioritize quick approvals. You'll receive a fast funding decision within a short timeframe, allowing you to access the capital you need and keep your business moving forward without delays.
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4. Get Funded
Finalizing the agreement is a breeze once approved. We'll handle any remaining information and deposit the funds directly into your account. This ensures quick and convenient access to the capital you need, empowering you to focus on what truly matters – building a thriving construction company.
Get the Funds You Need for Your Construction Business with SMB Compass
Slow payments shouldn't stall your progress. SMB Compass invoice factoring is the key to keeping your construction business moving forward. Get the working capital you need when you need it to cover payroll, purchase materials, and seize new opportunities.
Our streamlined process is designed for busy construction companies:
Quick and easy online application.
Minimal paperwork required.
Fast funding decisions.
Direct deposits into your account.
Stop waiting on clients and start building success today! Apply for invoice factoring with SMB Compass and see the difference immediate access to capital can make for your construction business.
Fill out our simple application in minutes and receive a funding decision fast. There's no obligation, so apply now and build the construction business of your dreams!
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