The FK Construction Funding Advanced Funding Program for SUBCONTRACTORS

was created to help relieve the growing cash flow challenges that sub-contractors face every day covering payroll and materials while waiting to be paid.

FK CONSTRUCTION FUNDING provides A-Z cash management, funds control and risk mitigation solutions that are custom tailored to the commercial construction industry. In addition to our cash management services of advancing funds to subs, suppliers & vendors, we will arrange for the following;

• Credit reference letters
• 
Mobilization funding
• 
Supplier & vendors credit lines
• 
Material deposits
• 
Insurance premium payments
• Union dues payments
• Cash for payroll
• 
Operating expenses

Subcontractors can now tap into cash when they need it most (not when it works for the general contractor & the owner). The program expedites payments to sub-contractors while improving cash flow and offers a non-debt solution to get paid the day the pay application is approved;

The Best Part

• Subcontractor decides which projects to finance.
•  The application process is simple and jobs can be set up for funding in days.
• Once the setup is complete, funding usually takes place the same day the payment application is approved.

Why do Larger Subcontractors Use Us?

In a word…RISK! Specifically, credit risk. Subcontractors, often the smallest players on commercial construction projects are expected to take on the lion share of the financial risk. Subcontractors typically submit monthly progress billing but then have to wait another 53 days on average to receive payment. Aside from the obvious financial burden, this exposes them to a tremendous amount of financial risk.

Our program was designed to mitigate the risk associated with extending credit to General Contractors and owners on commercial construction projects. Our credit risk mitigation program is uniquely designed to ensure that the subcontractors exposure is limited to one (1) billing period (rather than the 2 or 3 that is customary). The risk of chargeback or offset is virtually eliminated through the implementation of our program.

Why Do Smaller Subcontractors Use Us?

As mentioned above subcontractors, often the smallest players on commercial construction projects are expected to take on the lion share of the financial risk. Subcontractors generally get to progress bill once a month and then have to wait another 53 days on average to receive payment. Our program allows the smaller subcontractors to be competitive on larger projects.

1. We eliminate the financial barriers that prevent most small subcontractors from taking on more work and growing their business.
2. We eliminate the cash flow and supplier credit constraints that effect nearly every small subcontractor.
3. Early pay discounts from suppliers and vendors offset our fees and strengthen relationships. We help subcontractors establish or improve their credit rating.
4. They stay in control…bonded subcontractors often give up all kinds of financial control. Beyond the extensive and invasive credit workups they often have to pledge personal assets. Our credit decisions are based solely on the credit strength of your customers, in other words the general contractor or the owner.

Let’s discuss…I assure you that you will come away from the call with a new perspective on financing your current and future projects.