[Elias]

Obviously the requirements for GCs has tightened considerably, commensurate with their recent decrease in profit margins, but how do funders feel about electricians, lighting wholesalers, plumbers, roofers, etc...?

[FLORIDAMAN]

Love electric and plumbing. Roofing not so much

[Elias]

Love electric and plumbing. Roofing not so much

Does roofing vary by state? I can imagine a roofing company in south florida in Q3 of any given year is popping off

[JayS]

specialty contractors all day > GCs. I feel like roofers are always subbed.

[FLORIDAMAN]

Does roofing vary by state? I can imagine a roofing company in south florida in Q3 of any given year is popping off

Oh for sure. Were definitely approving our fair share of roofers right now, the terms just tend to be less aggressive than we are with electricians and plumbers.

[Elias]

Oh for sure. Were definitely approving our fair share of roofers right now, the terms just tend to be less aggressive than we are with electricians and plumbers.

For my own knowledge, to know what to presell etc- if a roofer and a plumber are both making 100k, how less aggressive are you going on the roofer? 50k for the roofer vs 85k for the plumber for 100 days? just ball park numbers

[FLORIDAMAN]

For my own knowledge, to know what to presell etc- if a roofer and a plumber are both making 100k, how less aggressive are you going on the roofer? 50k for the roofer vs 85k for the plumber for 100 days? just ball park numbers

many factors go into pricing besides industry but Id say those numbers are a fair assumption on the differences for us, plumbing you can assume a 20-30% longer term and up to 35% withhold compared to >30% withhold for roofing. Hope this helps

[Elias]

many factors go into pricing besides industry but Id say those numbers are a fair assumption on the differences for us, plumbing you can assume a 20-30% longer term and up to 35% withhold compared to >30% withhold for roofing. Hope this helps

Really helpful! Thank you

[closer129]

My company treats all types of construction pretty much the same as far as profit margins and risk of the industry. We look at each file on its own merit as far as credit time in business location and so on. We have an adjustable ach payment for them especially roofers so that we can fluctuate the payment depending on the seasons. We also can offer a percentage of the credit card sales if they take them so there is no payment if they do not run any cards for day. We also push them first positions since the usually need money on a more regular basis and we do not refinance the old balances like everyone else does we will just add new money to the back of the old keep the current payment the same and we add more time to the deal to the back end. This makes the money that is already high cost a little better to use and profit from.


Scott Platto
scott@tmrnow.com
tmrnow.com
212-220-9872

[mistamca]

Subcontractors are great because their income is typically from businesses rather than consumers. Depending on the state, the subcontractor can be very protected from a lack of payment. A few months ago, I was talking to an exec at an insurance company for a specific niche and he said that the industry is typically always 4 months away from bankruptcy it makes sense why construction is such a high-risk file. A construction company will always have way more debt than you can see because they will typically have multiple unsecured lines with no UCC filed aka supply house

[omegafund]

Obviously the requirements for GCs has tightened considerably, commensurate with their recent decrease in profit margins, but how do funders feel about electricians, lighting wholesalers, plumbers, roofers, etc...?

Sub Contractors are easy for invoice factoring as long as they have commercial clients. (Usually stay away from roofing companies.) Long term residuals.
Invoice Factoring sub contractors

bzuniga@omegafund.com