SBF Southwest Florida
International Association of Commercial Finance Brokers
Financing for Contractors & Sub-Contractors
When discussing financing efforts in the construction sector, you will have worked with three possible types of clients. They are:
- SUB-CONTRACTORS: Those actually performing the work on a job site and being paid for that work by a General Contractor
- GENERAL CONTRACTORS: Seeking to get advances on progress payments made to them by project owners or banks
- SUPPLIERS: Businesses that supply materials to the job site. This is everything from lumber and trusses to bulk hardware.
Of the three groups, sub-contractors tend to be the most common clients of IACFB’s. It is so common for sub-contractors to find themselves in need of financing due to unforeseen weather conditions, slow delivery of materials, and other events that slow down the progress payments for the general contractor, thus slowing down payments to sub-contractors.
Just a Few of the Types of Construction Sub-Contractors We Have Funded
Typical Funding Requirements
Construction is one of the slowest paying industries. In fact, it is not uncommon for sub-contractors to wait nearly 80 days on average for payment on invoices. Providing sub-contractor financing fits in two (2) broad categories and that would be financing for commercial construction or residential construction. For sub-contractors doing work primarily for residential construction, the most common route is traditional term loans through the SBA 7(A) Loan Program. For those working primarily in the commercial arena, most sub-contractors will look at invoice factoring due to its flexibility and ease of access.
Over 500 Lenders to Serve You
At IACFB, we publish the Directory of American Factors and Lenders, the largest database of factors and alternative commercial finance providers available in the industry. Our access to the directory means that “when the banks say no”, we can virtually always find the right lender for your capital needs every time. In fact, if we can’t get it done, it likely can’t be done Find your nearest Certified Consultant to discuss you financing requirements.