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Construction Receivables Financing    GETTING STARTED

 

Does this ever happen to your company?

 

Your company is financing its labor and materials on a project while waiting for payment from the General Contractor.  While the GC waits on project funding, he delays paying your invoice for work completed.

 

That causes cash flow stress for your company :

  • Trouble covering payroll

  • Not enough cash to fund growth or additional work

  • Can't take on new jobs or service loyal customers

  • Cannot take advantage of discounts

  • Big projects use up all available cash

Solution: Turn the Account Receivable into cash

  • No minimums

  • No monthly commitment

  • You choose which invoices to finance

What is Accounts Receivable Financing?

Receivable financing is a method used by businesses to convert sales on credit terms for immediate cash flow. Financing accounts receivable has become the preferred financial tool in obtaining flexible working capital for businesses of all sizes. The receivable credit line is determined by the financial strength of your  customer.

Accounts Receivable Financing is available in days, not weeks.

 

We make receivable financing easy to obtain with minimal paperwork. Our decisions are not based on your company financials, tax returns or bank ratios. We make decisions primarily on the invoicing process and the credit strength of your customer.  As specialists in evaluating and financing accounts receivable,  you should receive a prompt decision within a day  This financial solution involves very little underwriting. The approval process is simple and we can expedite initial funding in days.

 

Business Qualifications for Receivable Financing

 

Our financing programs can accommodate companies with seasonal or uneven sales patterns or start-up operations with no financial base to rely upon. Any business can qualify for receivable financing if it generates sales on open credit terms to customers with financial credit strength. Most of our clients are trying to find a solution to finance their growth or whose past earnings will not justify a traditional loan or credit line increase.

 

What Qualifies for Receivable Finance?

 

Unlike many other factoring companies, this program specializes in servicing construction industry invoices.

As a rule of thumb, your business must sell to a good credit worthy account debtor (the GC or other customer), a receivable or invoice that can be verified or has an acceptance (signed off) by the account debtor.  

 

 

Example of Construction Firms that Finance their Receivables:

  • Appraisers

  • Architects

  • Asphalt

  • Cable Companies

  • Carpenters

  • Carpet

  • Ceiling / Drywall

  • Electrical Contractors

  • Engineers

  • Excavators

  • Expeditors

  • Flooring

  • HVAC

  • Inspectors

  • Landscapers

  • Paving

  • Plumbing

  • Roofing

  • Security Firms

  • Steel Fabricators

  • Tile Contractors

  • Underground Utilities

 

What's the Next Step?

 

Step #1

Fax your Accounts Receivable Aging Schedule and a Customer List  (including city and state where located as well as phone number) and copies of recent unpaid invoices to us at 1-212-658-9003

 

Step #2

We will arrange a conference with you to discuss the aging schedule, client list and funding request.

 

Step #3

We will send you an Application for Factoring and list of documents required to process.

 

Application for Factoring

 

Company Information

 

Certificate of Officers Agreement - will need to have signature notarized where indicated.

(If your business is not incorporated, you will not need to complete a Certificate of Officers Agreement)

 

Certificate of Incorporation and/or dba certificate filed with the state

Please provide your exact legal name, address and phone number and that for each of your customers. Accurate legal names help speed up the search to make sure there are no outstanding liens or judgments.

 

Processing Fee in the amount of $750 to offset the cost of running a UCC, Federal Tax Lien, and Judgment search (to ascertain that no other liens exist on their accounts receivable) as well as for the filing of UCC-1 documents with the Secretary of State, and requesting D&B Reports on your current customers.

 

We only ask for this processing fee after we have determined that we are interested in proceeding with a factoring relationship, but does not necessarily guarantee that we will purchase a particular invoice..

 

Step #4

As invoices are submitted, your customers are contacted to verify that the invoices are due and payable (that is, work has been completed and accepted, service rendered, or goods delivered and accepted) and that the invoices will be paid directly to factor address. 

 

Step #5

You will execute a Purchase & Sale Agreement whereby ownership of the invoices are transferred to the factor. You are advanced up to 60% of the face amount of the invoice[s] to your client.

 

Step #6

Upon payment by your customer, first the initial advance is repaid , then the discount fee, and the difference is remitted directly to you

 

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P.O. Box 9584, Niskayuna, New York 12309-0584
Telephone: 518-346-2115  Fax: 212-658-9003