When you own your own construction company, your biggest business plans can come crashing down if you are not able to keep up with your ongoing expenses due to delays in commercial client and general contractor payments. If you are like most construction company owners, you simply cannot wait eight weeks to get paid. Unfortunately, a majority of these companies do not have lines of credit or cash reserves to cover them financially in the interim. Here are a few tips for how to finance your construction company so that you can avoid cash-flow issues.
First, you may benefit from taking advantage of construction factoring, a service offered by J&D Financial. This essentially provides you with the commercial construction financing you need to make payroll, start new jobs, and pay suppliers in order to get discounts. Construction factoring for cash flow can be a tremendous help for people who work as electricians, heating installation and repair professionals, concrete providers, and door and window manufacturers.
The benefit of construction factoring is that qualifying for this service is a lot easier than receiving conventional funding is. It is worth noting that your invoices need to be payable in 60 days or less, and liens cannot encumber them. The work for which you are being must also be completed, and the invoices need to be payable by creditworthy commercial clients or general contractors.
Another benefit of construction factoring for cash flow is that your line of credit can easily be increased since it is flexible, which can be hugely helpful for when you win larger projects. In the field of construction, it is no secret that getting customers to pay in a timely fashion can be nearly impossible. With help J&D Financial, however, you can keep your coffers full and your business thriving long-term.