Commercial construction company expands margins with a $500K factoring line

AR Funding is proud to welcome this commercial and industrial construction service provider as one of its newest clients.

AT A GLANCE

Industry: Business Services
Location: TX
Company size: ~$600K
Reason for applying: Lengthening payment cycles
Cash available through factoring: $500K

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PROBLEM: High-margin contracts create a cash crunch

Founded in 2019, this construction company delivers tailored projects for the commercial and industrial sectors. After establishing a reputation for safety, efficiency, and quality, the company began to attract larger projects with significantly higher margins. 

However, the clientele for these projects demanded payment terms of 45+ days, which placed a strain on the company’s cash flow and put their payroll at risk. 

SOLUTION: $500K factoring credit line

The company owner applied for a bank loan, but with fluctuating revenues and a low credit score, he was unable to qualify. Having used AR Funding’s invoice factoring services for a different business, he reached out to discuss the financing needs of his construction business, and we were able to offer him a $500,000 factoring facility. 

Now the company can take on much larger jobs and increase their margins without jeopardizing their ability to pay for materials and payrolls. 

This happy client received financing with help from Darren Wright, Regional VP, Central Region. Find out how much cash your company can access through invoice factoring. Talk to us.