[Fundyman]

Is there any company out there that funds based on the contract itself?
I'm not talking about a company that says they do, but then needs A/R to fund. I'm talking a company that looks at the contract, establishes its validity, then funds a percentage of it upfront, and will use the A/R of the contract ITSELF to collect later.

Is there such a company? The thing I have is a guy with hardly any new A/R but who needs funding for the new contract itself. He doesn't want to wait until he has invoices to get funding. That can take weeks! He needs money now to embark on the project full-force.

[ryan $]

Hmmmm sounds familiar, how much is contract for 200?

[Hedley Lamarr]

Is there any company out there that funds based on the contract itself?
I'm not talking about a company that says they do, but then needs A/R to fund. I'm talking a company that looks at the contract, establishes its validity, then funds a percentage of it upfront, and will use the A/R of the contract ITSELF to collect later.

Is there such a company? The thing I have is a guy with hardly any new A/R but who needs funding for the new contract itself. He doesn't want to wait until he has invoices to get funding. That can take weeks! He needs money now to embark on the project full-force.

Fundyman,

There are a handful of contract finance companies in the market, but rates can be very steep and they will take just as long if not longer to fund than a factor. We have set up factoring facilities in a little as 10 days...could have been quicker, but we were waiting on the client for info. Once the account is set up and they submit invoices, it takes less than 24 hours to fund. Are they invoicing weekly under the new contract? If so, they might be able to finance current AR albeit small and then the new invoices at the end of the first week. Kevin.Henry@SeacoastBF.com

[Hedley Lamarr]

Fundyman,

There are a handful of contract finance companies in the market, but rates can be very steep and they will take just as long if not longer to fund than a factor. We have set up factoring facilities in a little as 10 days...could have been quicker, but we were waiting on the client for info. Once the account is set up and they submit invoices, it takes less than 24 hours to fund. Are they invoicing weekly under the new contract? If so, they might be able to finance current AR albeit small and then the new invoices at the end of the first week. Kevin.Henry@SeacoastBF.com

Sorry-Did not see that this is a construction Company. We can't do construction.

[ABL Rob]

A direct lender Factoring Co, will almost always need Client to have A/R now, to consider a construction related deal.
If a Client has no A/R, and has no current revenue, it would be difficult to find a factoring lender interested in this scenerio.
Good luck!

[Fundyman]

Hmmmm sounds familiar, how much is contract for 200?

This will always sound familiar. Trust me. But it's not for 200. It's just very common, and most of the time, it's guys w/ gov't contracts. Not in this case though.

[Ultimatecloser]

I'm not sure if this new program we have is a fit but it is considered strong on flexibility.

[Mynameisbob]

Capstone... I worked on a deal with them in the past. J

Just make sure you dont do any conference calls with your client with someone over there named Tobi. Very unprofessional, works out of her house, and she has dogs barking and talk about her amazon deliveries when they come to her door when your doing CC with your clients.