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§I · Industry brief

Advance against the general contractor's invoice to fund the next phase.

Subcontractors and specialty trades invoice general contractors or property owners on completion of milestones. Payment terms of 60 to 90 days are standard. Labor, materials, and equipment rental run on shorter cycles. Factoring against the general contractor's invoice funds the account before the next phase begins.

§What the cash-flow problem actually looks like
  • 01

    Material and labor costs settle on shorter terms than GC invoices

    Lumber, concrete, electrical supplies, and crew wages are due on delivery or weekly. GC invoices typically clear in 60 to 90 days, creating a timing difference on each project phase.

  • 02

    Retainage withholds a portion of each progress payment

    General contractors commonly retain 5 to 10 percent of each progress payment until project completion. The retained amount remains outstanding for the duration of the project.

  • 03

    Concurrent projects create parallel working capital requirements

    Each active job site carries its own payroll, material, and equipment costs. Multiple simultaneous projects generate independent float periods that run in parallel.

Typical operator

Subcontractors, specialty trades, and small general contractors invoicing commercial or government projects. Annual revenue $300K to $15M+.

Documents we usually need
  • ·AR aging report
  • ·Sample invoices or pay applications to GCs
  • ·Active contract or purchase order
  • ·Voided check for ACH funding
§How the desk handles it
  • 01Advance against approved GC invoices or pay applications so the subcontractor can cover materials, payroll, and equipment for the next phase.
  • 02The desk monitors the receivable and tracks payment, so the sub keeps a clean working relationship with the GC while retaining responsibility for collection.
  • 03Facility accommodates multiple active projects without requiring separate applications.
§Most common product for this industry

Invoice Factoring

An advance against your 30/60/90-day B2B receivables, with recourse. We advance against the invoice and track the payment; you keep responsibility for collection, and we don't assume the debtor's non-payment risk.

What it is
§At a glance
  • Funding speedOnce approved
  • AdvanceSubstantial against face value
  • Debtor typeGCs, owners, government entities
  • CollectionsMonitored by the desk. Client retains collection responsibility.
  • Multiple projectsSupported
  • Personal guaranteeNot required on the invoice
§Other lines on the same desk

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