As a contractor, you know that cash flow is the lifeblood of your business. However, waiting for payment from your general contractors who are waiting to be paid by owners puts a strain on your finances. This makes it difficult to grow your business and take on new projects. Fortunately, contractors now have invoice financing options like Constrafor’s Early Pay Program (EPP) to help avoid these challenges and build a strong foundation for their business.
Here are some key reasons why invoice financing is important for contractors:
1. Improve cash flow: Invoice financing allows you to get paid immediately for the work you've completed, rather than waiting for your GC to pay you. This can be especially important if you're facing a cash flow crunch and need funds to cover expenses or take on new projects.
2. Reduce time wasted on chasing payments: Chasing payments from general contractors can be time-consuming and frustrating. With invoice financing, you can leverage your approved invoices with a company like Constrafor, which will handle the collection process for you. This frees up your time and allows you to focus on running your business.
3. Avoid costly debt: If you need to borrow money to cover expenses while waiting for payment, you may end up in debt. Invoice financing is not a loan, so you don't need to worry about taking on additional debt or paying interest.
4. Take on more projects: With improved cash flow and fewer payment delays, you can take on more projects - even larger, capital-intensive ones, and grow your business. This can help you expand your reach and increase your profits over time.
5. Avoid funding projects and waiting for payment: Waiting 60-90 days for payment can be challenging, especially if you need to pay your employees or vendors in the meantime. Invoice financing allows you to get paid immediately, so you can avoid funding the project out of your own pocket.
If you're frustrated with delays in payment, consider exploring Constrafor’s Early Pay Program and learn how it can allow your company to maintain its pace of growth and improve its cash flow position by solving one of the largest problems in construction – payment delays. Our Early Pay Program (EPP) is a construction-first invoice financing solution that enables contractors to take control of their cash flow and keep growing their business.
Want to learn more? Talk to an expert now +1 (650) 313-6165