What is construction invoice factoring?
Construction invoice factoring is a method of financing used by construction companies to raise immediate cash. It involves selling outstanding invoices at a discount to a factoring company. This financial transaction is especially useful for overcoming slow invoice payments and solving cash flow issues. At Growth Capital, we provide financial factoring solutions for all types of construction companies. Our invoice factoring program enables you to finance construction receivables from slow-paying clients, providing you with working capital to run and grow your business.
Factoring invoices with Growth Capital is an easy way for you to manage your cash. Our targeted financing solutions include:
Same day funding
Get paid within 24 hours.
Spot factoring a single invoice
With Growth Capital, you get to decide how much you want to factor and when. In a spot factoring arrangement, you can opt to finance a single invoice.
Factoring all your invoices
You have the option to factor all of your invoices in a whole turnover factoring arrangement. Find out more about solutions with Growth Capital today.
How does factoring work in construction?
Factoring allows construction companies to gain access to immediate working capital. Growth Capital’s construction factoring program can be easily adopted as an effective cash flow management tool for construction contractors. We finance your outstanding invoices in 2 installments consisting of the advance and the rebate. The advance is paid up front and the rebate of the remaining balance (minus a factoring fee) is given after your client pays in full. We send you cash advances via direct deposit or wire transfer within 24 hours. Use the funds to pay suppliers, meet payroll, buy equipment, take on new contracts, etc. It’s up to you, and the possibilities are endless!
How does invoice factoring benefit the construction industry?
The construction industry is known for having long payment timelines. It can take as long as 30 to 120 days for clients to pay their invoices. For many construction contractors, slow payments can limit the cash flow needed to run their business smoothly. Construction contractors require sufficient cash on hand to cover various operating expenses in order to complete a project. Growth Capital helps construction companies run and grow their business without waiting for the cash. We finance your receivables, saving you time and resources spent on collecting payments. Here are the 5 simple steps involved in construction invoice factoring:
- Invoice your client with net terms of 30 days.
- Submit a copy of the invoices to Growth Capital for financing.
- We send you a cash advance by direct deposit or wire transfer.
- Your client pays Growth Capital when the invoice is due.
- We send you a rebate of the remaining balance, less a factoring fee.
Growth Capital’s construction invoice factoring plan is easy to obtain. We work with any construction company regardless of size, age, and credit history. The main qualification for invoice factoring is that you must have creditworthy clients. It is important to work with reliable commercial customers that make payments on time. Other qualification criteria includes:
- Invoices to be factored must be free of liens;
- Your company must not have serious legal or tax issues;
- You must have experience in the construction industry.
If your company meets these criteria, our program can be a great funding source for your business.
Is invoice factoring fit for your business?
Invoice factoring is an accounts receivable financing process that helps businesses improve cash flow. Factoring invoices provides businesses with immediate funds that can be used to pay for various expenses and to reinvest in the company. Is invoice factoring fit for your construction business? Consider whether you are interested in achieving any of the following business objectives:
- Pay bills on time;
- Hire more staff;
- Buy new equipment;
- Grow existing client accounts;
- Expand into new areas.
Factoring your invoices with Growth Capital will give you the necessary funds to achieve all of these business objectives. Don’t let slow-paying clients limit your success. Send us your construction receivables and let Growth Capital work with your specific requirements to help your business grow.
Construction factoring rates
Factoring rates can vary widely across factoring companies and industries. At Growth Capital we offer competitive and transparent factoring rates. Our price plans contain low rates and high advances to support all kinds of construction companies. We do not charge any additional hidden fees.
Benefits of using Growth Capital’s construction factoring services
Growth Capital aims to deliver the best factoring solutions to construction companies. Some of the major benefits of using our construction factoring services are:
Easy qualification criteria
Qualifying for invoice factoring largely depends on the creditworthiness of your clients.
Specialized in Factoring Services
We provide professional accounts receivable management by our highly experienced team.
We can design customized financial plans to fit your business needs and requirements.
Competitive price plans
Growth Capital offers competitive, transparent factoring rates and high advances.
We can give you cash today
After submitting your invoices, we make sure that your company receives funds within 24 hours or less.
There are no long-term contracts. You can choose between a whole turnover factoring and a spot factoring arrangement with flexible agreement terms.
Who can benefit from Growth Capital’s construction factoring services?
Growth Capital’s invoice factoring services caters to all types of contractors and contractors specializing in different trades. Below are examples of construction companies that can benefit from our factoring services:
- Directional drilling
- Utility construction
- Excavation and hauling
- Roofing companies
- Landscaping companies
- Property preservation
- Interior finish
- Drywall installers
- Lumber distributors
- Structural steel
- Underground utilities
- Paving companies
- Construction cleanup
- Construction staffing
Ready to Get started?
Why wait to get paid? Construction invoice factoring with Growth Capital can be a profitable and beneficial cash flow solution for your company. We finance your construction receivables and provide you with immediate working capital which you can use to cover expenses and reach your growth goals. Growth Capital strives to help construction companies in all trades get the funds they need to succeed. Call us today to get the best construction factoring plan for your company.