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06-30-2016, 05:27 PM #1Karen37aGuest
Factoring Construction Deal
I have a construction company
690 credit score
5 years in business
10 nsfs over 4 months 3 neg days
10 deposits 3 months 2 another
600k a month in revenues
He has a mechanic lien of 30k another for $1200
Direct Funders only He has a performance Bond
pm meLast edited by Karen37a; 06-30-2016 at 07:26 PM.
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06-30-2016, 05:55 PM #2
I know you mentioned factoring, but with real estate collateral WBL can potentially get them $1.2MM... maybe more if they have large upcoming contracts.
Zachary Ramirez – CEO
Phone: 562-391-7099
Email: zach@zacharyjosephramirez.com
1661 N. Raymond Ave #265
Anaheim CA 92801
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06-30-2016, 10:09 PM #3
- Join Date
- Mar 2014
- Location
- Ann Arbor, Michigan
- Posts
- 1,289
Factoring Construction Deal
Here's one example of why most factors won't deal with contractors. The factor relies on the contractor to pay their subs and materials. When they don't the owners get hit with a lien and deduct that from what they owe the contractor. The result is the factor does not get paid.
Bob
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06-30-2016, 10:35 PM #4Karen37aGuest
Isn't there a blanket lien they could use? And if not if he settles the mechanics lien is there a waiting period after..or just proof of settlement
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06-30-2016, 10:30 PM #5Karen37aGuest
Hence the reason I am throwing a hail mary up in the air on this post. This is like a niche within a niche and not my wheelhouse
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06-30-2016, 11:47 PM #6
- Join Date
- Jul 2014
- Location
- Jackson Hole Wy
- Posts
- 732
I have some factors that specialize in contractors. As long as they are a sub and do the work themselves, prefer not bonded on the work., no retainage. Would have to payoff liens
pm you
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07-01-2016, 07:08 AM #7
- Join Date
- Dec 2014
- Location
- Quogue, NY
- Posts
- 1,108
I work closely with a Construction Factoring firm that has no issues with Retainage, paid when paid, Milestone billing etc.. Very hands on. With a client that is billing 600k a month - with likely 900k in open paper, the biggest issue is whether the clients are credit worthy. If they are I can definitely assist..
Richard 516 510 3855
rg@businesscapitalconsultants.com
775 Park Avenue Suite 255
Huntington, NY 11743
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07-06-2016, 07:36 PM #8
- Join Date
- Mar 2016
- Posts
- 335
We are a direct lender that works directly with construction companies. That is our specialty.
Contact me
Bill
allamericantrust.com
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07-06-2016, 07:42 PM #9
- Join Date
- Mar 2014
- Location
- Ann Arbor, Michigan
- Posts
- 1,289
Factoring Construction Deal
Ted: would you please layout some underwriting criteria that will teach the ISO's how to recognize a construction deal that may be financed.
I'm glad we have someone with that particular expertise here on the DF.
Bob
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07-06-2016, 07:52 PM #10
- Join Date
- Mar 2016
- Posts
- 335
Good idea.
UW Criteria for construction deals:
-doing 50k/month or more in work for a creditworthy commercial firm or gov't
-current in tax payments (if not, a payment plan is in place)
-no UCC's filed with other financial firms (but, we can work with banks)
-need to see their AR and AP
-no bank statements needed
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07-06-2016, 08:21 PM #11
- Join Date
- Mar 2014
- Location
- Ann Arbor, Michigan
- Posts
- 1,289
Factoring Construction Deal
Thanks guys.
Bob
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07-11-2016, 06:27 PM #12
- Join Date
- Oct 2015
- Location
- Bayonne, NJ
- Posts
- 14
send me the deal mcohen@unitedmerchantsavings.com
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