Contractor Talk - Professional Construction and Remodeling Forum banner

Factoring?

1901 Views 4 Replies 4 Participants Last post by  mrghm
Can I use a factoring company to get paid early on a commercial paint job? What companies are good to deal with this sort of thing?
1 - 5 of 5 Posts
Sure you can- but unless you've got a very fat profit margin in the deal, there won't be anything left once you pay their fees. Even for large debts, you're going to pay a few points per month, and if it's a smaller amount, the fees are higher.
You also better have Solid Gold credit. These companies are folding and merging as much as the bad mortgage banks right now. If your credit is that good, get a line at a local bank. You'll be way ahead. If it sounds to good to be true, it is, and the factoring receipts deal is one of them.
I thought factoring was dependant on the payer's credit, not the reciever? I am talking about factoring where I am not responsible for repaying the debt. Non recourse factoring where they go after the one that is supposed to pay...the customer.
you will only be able to factor the approved claim when the GC does there claim assement, you can not factor the entrie claimed amount until its approved.
1 - 5 of 5 Posts
This is an older thread, you may not receive a response, and could be reviving an old thread. Please consider creating a new thread.
Top