Factoring Construction Receivables requires different standards than factoring other types of receivables. The following comments assumes you are a subcontractor.

1. Joint Check Agreement: You, J&D Financial and the General Contractor will have to sign a joint check agreement indicating that all payments must come to J&D Financial.
   
   
2. Lien Rights: You must assign all lien rights to J&D Financial. If the state requires preliminary notices, these must be filed on time.
   
   
3. Verification of Invoices: Attached is a copy of the form that the general contractor (GC) must sign off before any invoice is funded. Show this form to your GC and see if he will sign. If the GC will not sign, we cannot fund. See Construction Form.
   
   
4. Payment of Suppliers from Advance. We generally advance 70 to 80% to our client. Because of the Mechanics Lien Laws affecting your supplier, we will want to pay major suppliers from your advance OR have your suppliers sign lien waivers.
   
   
5. We will not fund retainage, liens, offsets, charge backs or claims.
   
   
6. The average customer will pay 3-4%of the gross invoice aged 30 days, 6% if aged 60 days.
   
   
7. Bonding: If the job is bonded, the bonding agency must either put J&D Financial in a first UCC-1 position on the receivables OR sign a contract signing they will pay J&D for invoices factored if the Bonding agency takes over the job.
   
   
8. General Contractor: The same rules apply to General Contractors in privity with the owner as discussed above.