Are you a subcontractor who is waiting 30, 60, 90 or even 120 days to get paid by a general contractor or a commercial customer? Slow payments can create cash flow problems and affect your ability to pay employees and construction suppliers.
Construction factoring can get your invoices financed quickly. This solution provides you with immediate funds to pay corporate expenses and grow. And, unlike bank financing, factoring is easy to obtain and can be set up in days. Note that to qualify for this program, subcontractors must invoice a minimum of Ugx50,000,000 per month.
The program is simple to use and works well with most construction subcontractors. We finance invoices in two installments: the advance and the rebate.
The advance is paid soon after you submit the invoice for financing. An advance ranges from 70% to 80% of the face value of the invoice, less any retainage amounts. The funds are either wired or direct-deposited to your account.
The rebate is deposited to your account once your commercial client or GC pays the invoice, on their regular schedule. The rebate consists of the remaining 20% to 30%, less the factoring fee. For detailed information about factoring, read "How Does Factoring Work?"
Factoring your construction receivables has a number of benefits, including:
Our program is easier to obtain than most banking solutions and can be set up quickly. The main requirement is that you work with general contractors or commercial customers who pay invoices reliably in 60 days or less. Also, your company must meet these criteria:
Companies that can benefit from our services include: