| The economic downturn has been hard on a many | | | | contractors, architects, or property owners. Repair |
| businesses, especially the construction industry. This | | | | work is almost always done on direct order from |
| sector is responsible for building our nation's houses, | | | | owners, occupants, architects, or rental |
| corporate facilities, factories, apartments, offices, | | | | agents.dependent upon economic business cycles, the |
| schools, roads and bridges. General contractors and | | | | construction industry might face changes in interest |
| sub-contractors still may be experiencing cash flow | | | | rates and tax laws that affect individual and business |
| problems. | | | | decisions related to construction. Changes in state or |
| There are three basic areas, construction includes: 1) | | | | local regulations or budgets can result in new |
| Building, including general contractors who build | | | | construction or a cancelled job. |
| residential, industrial, commercial, and other buildings. 2) | | | | Thanks to factoring among contractors during the last |
| Civil engineering construction where contractors build | | | | year, this tactic has helped provide the cash flow |
| roads, bridges, highways, and tunnels, and 3) Specialty | | | | needed to pay suppliers, meet payroll and pay for |
| trade contractors, who work on projects such as | | | | insurance, as well as workmans compensation. |
| carpentry, painting, plumbing or electrical. | | | | Construction factoring enables businesses to obtain |
| Construction jobs are not just about new structures, | | | | funds based on their current accounts receivables, so |
| but often require site preparation, repairs, maintenance, | | | | they can go ahead with the next phase of a project, |
| or improvements to an older project | | | | rather than wait till the invoices are paid. |
| The construction industry supports architects, | | | | Why does the construction industry benefit from |
| engineers, inspectors, appraisers, brick masons, | | | | factoring? Because when factoring is used, the |
| carpenters, electrical and drywall contractors, flooring | | | | sub-contractor, or construction company, does not |
| and tile contractors, and even asphalt companies, all of | | | | have to wait for payment before starting on the next |
| whom could take advantage of invoice factoring to | | | | phase of a project, or begin construction on a new |
| help them get by during challenging economic times.. | | | | project. With invoice factoring, the sub-contractor or |
| These jobs are usually done by general contractors, | | | | construction firm can realize quick turnaround, from 24 |
| who specialize in one type of construction such as | | | | to 48 hours, on accounts receivable due for completed |
| either residential or commercial building. They are in | | | | stages of a construction project. With construction |
| charge of the entire job, and although general | | | | invoice factoring, the construction company, or the |
| contractors may do a portion of the work with their | | | | sub-contractor, can be paid overnight for accounts |
| own crews, they often subcontract work to specialty | | | | receivable invoices, which speeds up cash flow and |
| trade contractors who typically do the work of one | | | | improves the company's ability to start immediately on |
| These obtain orders for their work from general | | | | the next phase of construction for each project. |