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Feb
01
2011

Growth in Construction

Posted by in Contractor Factoring

Construction activity in the public sector is continuing to grow! Concurrently, due to the strain on budgets at all levels of government, contractors working on publicly funded projects that are used to being paid in 30 days or less are having their Accounts Receivable Aging  stretched out to 45 and 60 days and beyond, negatively impacting their credit and relationships with suppliers and subcontractors. This situation presents an opportunity for factors specializing in public sector construction contractor factoring such as RMP Capital to provide a valuable solution to this dilemma: By factoring their receivables, contractors gain access to needed capital in order to pay suppliers and subcontractors in advance of their normal schedule, offering the opportunity to negotiate for “prompt-pay discounts” in excess of the costs of factoring, therefore reducing their overall project costs and increasing their profitability without tying up their own working capital! A value-engineered solution to a serious cost containment problem provided by a factor!!

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