Contractors and Subcontractors Turn to Factoring
As the economic circumstances tighten many companies, including contractors and subcontractors, are beginning to turn towards factoring to improve cash flow. Factoring is a financing option that allows a company to submit invoices to a factoring company in exchange for a portion of the invoice value. Value given can range from 70% to 90% of the total invoice amount. After the invoice is collected, the difference is paid less a factoring fee. These fees can be expensive and they do add up.
There is another alternative. Labor expense is quite often the most expensive aspect of a contruction project. Rather than factoring your construction invoices to pay labor wages, thereby incurring financing fees and interest, turn to Construct Corps. Construct Corps can provide your construction company with labor at attractive 30 day payment term, allowing you to turn a weekly expense into a month expense. Additionally, delaying your labor expense by using staffing from Construct Corps lets you reduce your workers compensation risk, lower your unemployment burden, reduces your hiring expense, makes your labor a true variable cost, and does not incur interest or fees like factoring.
Subscribe to Construct Buddy’s blog today.
Construct Corps’ unique centralized recruiting/qualification systems allow contractors to utilize a local workforce in almost any
location at price that fits their budget. Go to http://www.constructcorps.com for more information or call 866.532.6777.