Are you a roofing contractor who is worried about making payroll and paying for supplies? This is a common problem for small and growing roofing contractors. Invoice factoring for contractors can help. With construction invoice factoring you get access to the funds you need to make payroll and purchase supplies regardless of your cash flow.
Construction invoice factoring, also known as accounts receivable factoring or factoring for contractors, turns your unpaid invoices into immediate working capital, regardless of your credit history or company size, eliminating the need to wait 30, 60, or 90+ days to get paid. One benefit that invoice factoring has over getting a traditional bank loan is factoring companies look at the creditworthiness of your customers, instead of that of your business. Given that, if your business has a creditworthy commercial customer base with unpaid invoices, invoice factoring is an option for you to consider.
If you are used to the lengthy process of trying to get a bank loan the quick and easy process of working with a factoring company might surprise you. With a bank, it can take months to get approved for a line of credit. However, with a factoring company, account setup takes a matter of days with funds being approved generally in less than 24 hours. Once your account is set up the process is simple to continue to receive funds. First, you simply complete the job and invoice your customer as usual. You must also send a copy of the invoice to the factoring company. The factoring company will then send you cash, which is usually up to 80% of the value of the invoice, often in a matter of hours. The factoring company will then wait to collect the invoice from your customer and send you the balance, less a fee, once they have collected the payment.
Invoice factoring could be the working capital solution your roofing business needs to make payroll and purchase supplies when your cash flow is unpredictable. If you have questions or want to explore these options, contact us today. We would love to discuss freeing up your business.
Related Reading: Pre-purchase Construction Materials – Saving Both Time and Money
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