Construction Factoring To Aid Small Business Improvements

U.S. construction actually bottomed out in 2009 with just modest improvement during

this last year of 2010. But like the entire economy, market projections are already showing signs of improvements for the year 2011. The analysts believe that single-family home construction will definitely increase. But what is new is that consumers are demanding that builders focus on energy efficiency. The real reason is because they also know it is a strategy so that they can reduce their costs.

Starts in construction this next year edged up by about two percent to a seasonally adjusted annual rate of $413.8 billion. Much of this was due to public works with an added lift in housing growth. Following improved contracting a month earlier, nonresidential building retreated in October. Through the first ten months of 2010, total construction on an unadjusted basis was $350.4 billion, down three percent. (Source: McGraw-Hill Construction, a division of The McGraw-Hill Companies.) Public works got a bit of a lift, from the federal stimulus act, which helped with the building of bridges and highways and bridges to include more environmental construction work.

Many contractors are discovering that age old financial strategies and tactics like construction factoring can help them pay their bills and make payroll, plus it helps when it comes to preparing for the next job, a the cash from factoring helps them stock up on supplies.The construction industry is one of several sectors that can benefit tremendously from invoice factoring. Sub-contractor, or construction companies are no longer required to wait for payment before starting on the next phase of a project, or begin construction on a new project.

With factoring, sub-contractors or construction firms can realize quick turnaround (often within 24 hours) on accounts receivable due for completed stages of a construction project. Construction factoring offers sub-contractors with immediate payment of accounts receivable invoices. This can help a builder come up with cash immediately on the next phase of construction on any given project any time.There are very few invoice factoring companies that are willing to provide construction factoring services. if you, or your construction firm is in need of, short term financing just remember that immediate working capital is available now by searching online.In 2011 however, tight bank lending and the eroding fiscal health of states will affect the construction of buildings such as offices and schools.

by: Kristin Gabriel

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