We understand that there is a lot to consider when deciding whether or not to finance your projects. Our Managing Director, Frank Skelly has answered many of the questions that come up the most in his experience. Click the image to the right to watch the answers to these often asked questions.

Advanced Funding Program

Funding for Subcontractors


How it Works

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 and vendor 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 subcontractors while improving cash flow and offers a non-debt solution to get paid the day the pay application is approved.

The Best Part

  • The 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 submit progress billing 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.

Cash Management System Program Overview & FAQ’s

The FK CONSTRUCTION FUNDING Cash Management System (CMS) program involves advancing funds on approved construction projects against verified pay applications for completed work. Our relationship with your customer is largely based on your promise to identify all expenses related to each pay application and for FK CONSTRUCTION FUNDING to pay the identified expenses and secure the related waivers or proof of payment. As a result, paying all expenses associated with each pay application at the time of disbursement is an essential part of our program.

Will you pay all my Subs, Suppliers & Vendors (SSV’s) on a funded project?

Yes, one of the core fundamentals of our program is paying all the SSV’s related to each pay application at the time of funding so that we may secure the required lien waivers and proof of payment.

What about expenses such as payroll, withholding taxes & union dues?

Yes, any unpaid expense which relates back to the project must be paid with each disbursement including payroll, withholding taxes, union dues as well as workers comp and surety payments.

What if my SSV’s have not billed me yet?

It is not uncommon for SSV’s not to have completed their billing by the time you are ready to submit a pay requisition to your customer, but we are still required to determine the amount each SSV is owed and either pay them or escrow the funds until such time as they are ready to be paid.

What if I have payment terms with my SSV’s?

The credit lines you enjoy with your SSV’s will still be available for your use on non-financed projects however on financed projects it is required that we receive proof that all the SSV’s have been paid prior to funding.

Do I have to pay expenses related to projects I am not financing?

No, expenses related to unfunded projects can be paid by you in the normal course of business and you are free to utilize your credit terms on those projects as needed.

10 Ways We Can Help You

Construction Funding – Is it right for me?

Are You Eligible for Construction Funding?

If you are interested in our services, please call (833) 352-3863 Option 1 or click the Get Started button.


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