Blog2020-09-18T14:07:48+00:00

Inter-Creditor Agreements – Should Senior Lenders Consider Them?

By: Frank Skelly

Why senior lenders might want to consider entering into inter-creditor agreements with commercial construction cash management & funds control companies.

We are frequently approached by sub-contractors who are in need of our services, however if they have an existing credit line, its often a deal killer. When banks and senior lenders provide borrowers with credit lines, they usually take a 1st position security interest in the borrower’s assets, which includes their accounts receivables.

One of the best ways for a commercial sub-contractor to finance their construction projects is with […]

September 18th, 2020|

Is factoring the right move to help finance a construction project?

By: Kim Slowey

Having enough cash on hand to pay the bills and fund new projects is always top of mind for contractors, especially labor- and material-heavy subcontractors that fund most of the activity on a construction project often months before the owner and general contractor pay their invoices.

Last October, construction finance platform Rabbet found that late payments cost general contractors and subcontractors about $64 billion a year, up $24 billion from a similar study Rabbet conducted the previous year.

More than 60% of contractors surveyed told Rabbet that they would not […]

September 16th, 2020|

10 Reasons Why The General Contractor Isn’t Paying You

By: Dawn Killough

As a construction accounts payable coordinator and contract administrator for a General Contractor, I’ve seen lots of invoices not get paid in my time. I’ve also received lots of calls and emails from subcontractors wondering where their check is. So I compiled some of the 10 most common reasons why the GC isn’t paying. (Five are the fault of the subcontractor, and five are on the GC.)

Below each ones, I included some possible solutions specific to that scenario. You probably also want to learn steps you can take to speed up payment […]

August 15th, 2020|

The Schedule of Values, Why is it so Important?

By: Frank Skelly

Construction projects require a lot of documentation: contracts, plans, notices, pay applications, supplier waivers, certified payroll, change orders, and more. One of those documents is the Schedule of Values (SOV). This document is particularly important, so it’s worthwhile to spend a few minutes discussing it.

What is a Schedule of Values?

Simply put, a schedule of values is a comprehensive documented list of work items on a particular project with corresponding values that, in total, represent the entire project from beginning to end including the entire contract price along with all approved change orders. According to the standard AIA documents, “The schedule of values shall allocate the […]

February 18th, 2020|

FK CONSTRUCTION FUNDING

A Cash Management & Funds Control Company


Contact
Frank Skelly
(800) 918-7830

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Location
218 S. US Highway 1
Suite 101
Tequesta, FL 33469


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