We know Construction/Civil
Construction’s a tough game. Time delays and cost overruns are simply part of conducting business. Plans change. The weather can sometimes determine the number of working days and it’s a rare occasion when a contractor says the job is done on time and under budget. Unless a contractor can present several years of positive cash flow and a robust asset portfolio, banks and traditional lending companies won’t even look at them.
AR Cash Flow can’t change the very nature of the construction industry, but we can provide the experience and financial means to help you to grow.
We don’t steer away from tough deals
Most contractors don’t have the resources financially or physically to take on more than a few projects at a time. Materials and labour are expensive and highly variable. This prohibits contractors in a way that doesn’t affect most other industries. Small construction companies frequently go under because they have insufficient capital to cover weekly wages and other fixed costs during the inevitable delays that are unique to the industry. Terms of payment are also unique to the industry.
Typical challenges faced by construction/civil companies
- Paying weekly wages
- Workers compensation and insurance costs
- Insufficient reserve capital to commence new projects
- Payment terms can reach up to 120 days from invoicing
- Debtor/customer payment terms are typically 30-60 days end of month (EOM)
Build a better future
The answer to the inevitable cash flow crunch facing building and construction companies is factoring. Worldwide, factoring is quickly becoming the alternative financing method of choice throughout the construction industry.
When your Banker says “NO”, AR Cash Flow says “YES” to all your construction funding and capital needs. Once you are set-up, we can typically have cash to your business account 24 hours after you have submitted an invoice or progress payment.
AR Cash Flow can also chase and collect payments on your behalf, prepare and send-out statements, contact your customers and maintain detailed accounts of your transactions. Our flexible range of options put you in control.
Are our clients in the building and construction industry happy?
(Testimonials)
Find out more
For obligation-free advice on your cash flow problems, call us today on 1300 652 158. There’s no queues or voicemail – just answers. Alternatively, apply online now for a quotation.