Subcontractor Factoring
Receivables financing for trade subcontractors, advancing cash against approved pay applications to general contractors instead of waiting on the GC-to-owner payment chain.
Built for the middle of the chain
Subcontractors carry payroll and material costs weekly but sit two payments away from the owner. Subcontractor factoring closes that gap by advancing against the approved pay application to the GC.
The underwriting focuses on the GC's payment history, the owner's credit, and the project's funding source, not just the sub's balance sheet.
Related Entries
See how this structure is used in practice.
View the industry page →