The construction industry in Massachusetts like in all other states, have been severely affected by the pandemic. In fact, the pandemic restrictions here are stricter than in most other places of the country. Despite all these barriers, construction activity in the state has picked up speed and is even employing more people now than at any time since the lockdown and restrictions began in 2020. If you are running a construction contractor firm you would know the cash flow challenges of this industry where payment timelines range from 90-120 days on average. It is very difficult if not impossible for a contractor firm to seamlessly take up work in a new project after completing one without hassle-free construction business funding in Massachusetts.
The construction business is capital intensive wherein huge amounts have to be spent on meeting the cost of heavy-duty and other equipment, construction material and of course skilled and semi-skilled workers. These expenses have to be met with upfront payments and if you are unable to do so, all functions at your project site grind to a halt. Nobody likes to think that far to visualize the worst-case scenario; rather it is much better to think of ways to overcome such a situation. That’s when you say to yourself, “Is there any fast and easy business funding near me?”
Accounts receivable funding is tailored for you
The root cause of most cash flow interruptions in a construction contractor firm is the long payment timeline that stretches almost up to a quarter of a year. You have many projects lined up for implementation and completion on your order book and completing just one construction project can drain most if not all of your cash balance.
The best solution to deal with this situation is to look for accounts receivable or construction invoice factoring in Massachusetts. In this mode of funding, the lender buys your invoice/s that is pending payment and deducts the cost of borrowing from the invoice amount that they eventually recover from your client.
Just focus on your core function which is construction
This is a quick and easy mode of accessing funds to bridge the gap created by the long payment timeline of projects you have completed. You have to move on to the next project in your order book and you need money to pay for resources to start work on the new project during this period.
Your profits will get marginalized after paying the cost of the business loans in Massachusetts that you access in the accounts receivable funding mode. However, it’s a cost you can easily manage with smart utilization of the funds and tighter cost control. Finally, you can recover your profits with a scale which can be achieved by handling more projects.
Choosing the right lender to access this kind of funding is very important because you will need the funds in a quick time and without unnecessary hassles. When you work with a top lender like Alternative Funding Group, all such concerns are addressed in the easiest possible manner.
