From New York City to Honolulu, Miami to Anchorage, concrete contractors and subcontractors literally lay the groundwork for the buildings that cover our entire country. While common in all areas of construction, these players often face a common problem: the delay between finishing a project and getting paid. This gap puts a strain on cash flow, making it hard to keep their business running smoothly. The solution? A financial strategy called invoice factoring.
Financial Challenges in the Concrete Sector
For small concrete contractors, managing cash flow can be tough. Large projects often require money upfront for materials and payroll, but clients can take weeks or months to pay. This delay can make it difficult to cover expenses for new projects or even day-to-day operations. Many small contractors also struggle to get financing from banks because of limited credit history or collateral.
Common Financial Pain Points for Smaller Concrete Contractors:
- Cash Flow Gaps: Payments can take 60-90 days, which ties up money that’s needed for materials and payroll.
- Limited Access to Bank Financing: Small contractors often find it hard to get approved for loans or lines of credit.
- Scaling for Larger Projects: Taking on bigger jobs means more upfront costs, but if payments are delayed, contractors may not have the funds they need to complete the work.
- Delayed Payments: When clients don’t pay on time, it creates a financial strain that makes it hard to keep things running smoothly.
At CapitalPlus, we understand these issues and offer factoring for concrete contractors to provide the quick, reliable cash flow you need. Since 1998, we’ve worked exclusively with construction businesses, including pavement companies and concrete contractors, offering solutions that fit their specific needs.
Tailored Financial Solutions for Concrete Contractors
Where traditional financial institutions like banks or generic factoring companies fall short, CapitalPlus can often be a perfect fit. As an independent entity dedicated exclusively to the construction sector for over 25 years, we offer unparalleled experience and options tailored to the unique challenges of concrete contractors and subcontractors. Our approach is simple: provide quick, reliable financial solutions where conventional banks cannot, due to their narrow criteria and lengthy approval times.
Factoring can also be a much safer form of alternative financing compared to others like Merchant Cash Advances for concrete subcontractors.
How Factoring Works for Concrete Businesses
With CapitalPlus, the process of invoice factoring is streamlined and specifically designed for the concrete industry. It’s a straightforward process where subcontractors can sell their outstanding invoices into immediate capital. Here’s a simple overview: you sell your unpaid invoices to us at a discount. We then advance a portion of the invoice’s value upfront, usually 80%. After the invoice is settled by the client, we release the remaining funds to you, minus our fee. This efficient process ensures that subcontractors have the necessary cash flow to keep their operations moving without a hitch.
At CapitalPlus, invoice factoring for concrete businesses is simple and straightforward. Here’s how it works:
- Apply: Call us to learn the details of factoring and how they fit in your situation.
- Sell Your Unpaid Invoices: Sell your unpaid invoices to us at a discount.
- Get an Advance: We quickly give you a portion of the invoice value upfront, typically 80%.
- Work While We Wait: We do the waiting on your client’s payment.
- Receive the Balance: Once your client pays their invoice, we send you the rest of the money, minus our fee.
This quick and easy process helps you keep your business moving, whether you need cash for payroll, materials, or new projects.
Case Study I: Lack of Credit, Limited Options
A start-up concrete contractor in Florida needed $1,400,000 in working capital to take on a large contract. Even though the owner had decades of experience, banks were unwilling to offer a line of credit because the company was less than a year old. CapitalPlus stepped in, offered factoring based on the contractor’s client, and provided the needed funds. This allowed the business to confidently take on the project, purchase materials, and hire the needed crew—all without waiting on payment.
Case Study II: Funding Source Disappeared
After their previous factoring partner abruptly stopped funding the construction sector, this Atlanta-based concrete contractor was left without financing. CapitalPlus stepped in providing the much-needed lifeline with $52,000 in factoring funds. This crucial cash funding enabled them to meet payroll, purchase required materials, and successfully complete their project: the restoration of a stone wall on a historic property.
Over the past 25+ years, we’ve worked with many concrete contractors. We’ve seen every situation that has led to the need for alternative financing options. These are just a few of our many clients’ real-world examples that show how factoring for concrete projects can provide the cash flow needed to cover current bills and reduce the likelihood of needing more financing in the future.
Strategic Advantages of Invoice Factoring
Invoice factoring isn’t just a stopgap measure for getting through a tough spot — it’s a strategic tool for sustainable growth. With better cash flow, concrete contractors can:
- Bid on More Projects: Since factoring reduces the financial volatility of cash flow issues, you can take on bigger contracts without worry.
- Build Stronger Supplier Relationships: Consistent, on time payments to your suppliers preserves trust.
- Maintain Financial Stability: Factoring keeps your business financially stable, even when clients take time to pay.
Factoring helps you focus on growth, rather than constantly worrying about how to cover the next expense.
The Factoring Journey: A Path to Financial Freedom
For concrete contractors pondering the benefits of invoice factoring, CapitalPlus is ready to guide you through a quick process, offering a partnership that understands the intricacies of the concrete, paving, or any construction-related financing. We’re here to offer solutions that align with your unique business needs, not generic options supplied by others.
Final Thoughts
In the realm of urban construction, concrete subcontractors require a financial ally that grasps the essence of their challenges. CapitalPlus is that ally, providing specialized invoice factoring solutions designed for concrete businesses. If cash flow hurdles are hindering your growth, consider invoice factoring as a strategic financial option. Reach out to us today for a quick, no-obligation call to see if factoring is a fit for your business.
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