Get your money off the bench – How contractors can monetize receivables

Description

Abstract: In the construction industry, long payment times are, unfortunately and increasingly, the norm. Under the right circumstances, however, a variety of financial solutions are available to remedy uneven cash flow situations, invest in expansion or pay off debt. This article explains that, besides obtaining a line of credit from a bank, it may also be possible to try “factoring,” which involves receiving an immediate cash payment through the sale of a receivable to a third party. A sidebar discusses various options for dealing with delinquent debt.