What are Construction Receivables?

Construction Receivables are accounts receivable generated by contracts on construction projects.

Construction Receivable transactions differ from normal receivable transactions in that construction projects are billed differently. Construction jobs are not normally billed with an invoice, but instead with a progress billing.  A progress billing is a statement that lists all work that has been completed to date. Contractors bill their customers for one step of the job when it completed, then bill again when the next step is completed.

What are some of the benefits of Advance Funding of Construction Receivables?

• To have working capital
• Make payroll
• Purchase Material (for existing projects as well as new projects)
• Purchase Equipment
• Pay contractors/subcontractors

In many situations, Advance Funding of Construction Receivables is more appropriate than bank financing, because Construction Receivables Funding:

·  Is based only on the Construction Receivables. A client's ability to raise cash by Advance Funding is based on the total Construction Receivables, rather than on traditional measures of financial strength and stability.

·  Provides continuing cash flow without the requirement of periodic payments or interim payoffs. New projects continuously create new power to obtain cash, and the business does not have to deal with renewal of loans or worry about maturity dates.

·  Gives a Contractor increased access to cash as projects and construction receivables increase. There is no ceiling beyond which the Funder must stop providing cash. The more projects a contractor signs, the more cash it can draw. The Funder does not concentrate on the Contractor debt/equity ratio to provide funds, as banks do.

·  Offers a dependable, continuing source of cash without the necessity of making separate loan applications.

·  Avoids the necessity of obtaining funds from venture capitalists, who receive an interest in the business and generally have a say in how the project is run.

·  Saves the Contractor precious time waiting for a loan board to grant or deny his or her loan. Loan boards' decisions are influenced by many considerations, and the outcome is often unpredictable. With Advance Funding of Construction Receivables, periodic delays and negotiations are eliminated, allowing the Contractor time to do what he or she does best – run their projects.

Don't let a lack of Working Capital hold you back,

Call Beacon Capital Solutions today at (407) 854-0098 or