Construction Factoring
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Transcript of Construction Factoring
Who are we?
Founded 1972Roots in the Construction Industry
1
What is factoring?
Purchase/sale of invoice/progress billing
Speeds up cash flow
2
Standard Factoring vs Spot Factoring
Minimums vs No minimums
Set up fees vs No miscellaneous fees
Collection services vs No collection services
No subcontractors vs Subcontractors okay
3
In other words
IFG purchases individual invoices/progress billings on a use-it-as-you-need-it basis
IFG can finance just one transaction
4
What clients will IFG fund?
In business from as little as 6 months
Annual revenue from $250K to $100M
Not concentrated in 1 customer Invoices for funding are not
bonded
5
How does IFG do construction factoring?
With recourse to your company With personal guaranty of the
owner With notification to your
customer By ensuring that suppliers and
sub-subs are paid
6
How much will IFG advance?
Up to 80% of the face of the progress billing net of retention
Ensure that suppliers and sub-subs are paid (joint checks to client and suppliers)sub-subs
Maximum of a/r will be 60% No advances against mobilization,
final bill or retention
7
What does it cost?
It could be expensive but you can control your cost
Discount depends on % advance and days outstanding
It’s flexible And there are no other fees
8
How can the client control the cost?
Sell progress billings that will pay the soonest
Take multiple advances Buy it back
9
What happens when the invoice is paid?
Balance paid to client Wire transfer
10
How quickly can IFG fund a subcontractor?
As quickly as you respond to our process
Usually at least 3-4 days Getting your GC to sign
Notification of Sale is out of our control
11
What is the process?
One-page application Financial reports
Profit & Loss, Balance Sheet A/R and A/P Aging Reports
12
What is the process?
Progress Billing/Pay Application with Schedule of Values
Sub-Contract List of suppliers, sub-subs and
amounts owed
13
What is the process?
Set-up documents Terms & Conditions Personal Guaranty Special Power of
Attorney Transaction documents
Offer to Sell Notification of Sale
Site Visit Wire funds Purchase Order
14
Questions?
15