The past few months has seen continued interest in our program from construction contractors that have figured out how to survive this anemic recovery. They have done this by reducing overhead levels and only bidding on projects that they are sure will pay them for their work in a timely manner, specifically publicly funded projects. In many cases the contractors we are working with have successfully transitioned from working on privately funded commercial projects to those that are publicly funded. They have found that governments at all levels continue to have requirements ranging from rebuilding and refurbishing infrastructure, such as schools and other government buildings, to funding rehabilitation programs for houses in blighted areas. In most cases the types of construction they are working on are very similar to the work they were performing in residential or light commercial construction. In addition to them possessing the agility to transition from one space to the other, the other characteristics they all had in common were a lack of working capital in an environment where banks are not interested in providing financing and a limited capacity back office necessary to keep up with the additional administration required to work on publicly funded projects.
Since we provide resources to help contractors with both working capital and project financial administration, these are great prospects for our Contractor Factoring Program who are competing for publicly funded projects and whose contact information is publicly available on the lists of bidders on all public projects. RMP Capital also has excellent programs to assist brokers interested in prospecting in this area.