Contractor loans

2 Replies

Hi BP, just trying to get my ducks in a row, so far, I have just broken ground to residential market. I am exposed to government and commercial tenant improvements or construction, where we are to perform then get paid, on these projects, we need capital to operate. Since residential are different and flexible, I am trying to stretch how flexible it is. Say I have a 100k rehab contract, and I want to sell 25% of it to a lender, that way I don't have to cash out anything, and just get paid to bankroll from that 25%. Is there a program like that for residentials? If so, how does it work. I ask because I have a 180k potential contract for apartment rehab, they pre-qualified 3 contractors and about to choose one, am about to submitted my papers next week, and contract will start mid Jan.

I have inquired some factoring companies but that means I have to go and get an invoice THEN factor them out. Long story short, not for me as it will defeat my purpose. I could have just embed on contracts that if invoices aren't paid on time, the contract pauses.

Now pre-funding on government contracts is not easy to find but I found one, where they fund me the materials and do the labor. These are perfectly secure because we have the performance and payment bonds posted on our surety company, plus, the government always pays, eventually. On commercials, it's quite a challenge, having a big corporate client like at&t might change their mind, whoever is lending.

With our unsecured contractor loans or contractor Lines of Credit we offer:

  1. 24 Hour funding without the invoices or receivables
  2. No Need to Contact the contractors clients
  3. Line of Credit option available for qualified contractors.
  4. You do not need to sell your invoices or assign your invoices
  5. No Need to verify invoices or concerns about retainage
  6. No need for UCC's or No Lien on Equipment
  7. No lengthy bank approval process or additional liens on home or business property
  8. Easy contractor working capital to cover payroll
  9. Contractor Financing to purchase materials
  10. Gain Additional Financing to secure larger work orders and contracts!
  11. No Loan Payments for up to 30 days for some programs!
Originally posted by @Max Matrin :

With our unsecured contractor loans or contractor Lines of Credit we offer:

  1. 24 Hour funding without the invoices or receivables
  2. No Need to Contact the contractors clients
  3. Line of Credit option available for qualified contractors.
  4. You do not need to sell your invoices or assign your invoices
  5. No Need to verify invoices or concerns about retainage
  6. No need for UCC's or No Lien on Equipment
  7. No lengthy bank approval process or additional liens on home or business property
  8. Easy contractor working capital to cover payroll
  9. Contractor Financing to purchase materials
  10. Gain Additional Financing to secure larger work orders and contracts!
  11. No Loan Payments for up to 30 days for some programs!

 Curious, what is it based of? Credit score? What are the terms?