Financing Options for Underground Utility & Cabling Contractors
Financing for Utility Construction Companies
Fiber and Utility company factoring financing injects cash flow into businesses struggling with slow-paying customers. Telecom contractors with extended credit terms need working capital to cover payroll and other payables. Telecom invoice factoring financing solves cash flow crunches quicker than traditional financing.
How to Finance Fiber and Utility Construction Companies
According to Emergen Research, the broad fiber optics market expects to exceed $9.5 billion in annual revenue over the next five years. The development and implementation of 5G technology enabled by fiber optics are critical for our economic and national security future success. Fiber and Utility companies secure large contracts for installations of antennas, optics, and other equipment. This lucrative business comes with one major downfall for utility companies – most vendors require credit terms up to 60 days for invoice payment. NET60 billing is standard in the cable, telecom, and utility sectors.
Fiber and Utility contractors work on projects requiring significant investment in staffing, labor resources, and equipment and material. These investments can be tough to overcome for a startup utility company or a business lacking sufficient cash reserves. There is plenty of money to make in the fiber industry. Still, construction contractors must plan to cover two months of payroll and business expenses while waiting for payment.
Working with utility companies can be very profitable. Most utility companies have excellent credit ratings, pay on time, and make great long-term clients. The solution to your cash flow problem is factoring financing.
Factoring financing is an alternative business financing tool, typically called invoice factoring. Factoring speeds up your receivable cycle by turning unpaid invoices into working capital today.
Bankers Factoring Cable Telecom Factoring relieves cash flow burden, provides consistent cash flow, and helps utility and fiber companies accelerate sales performance.
Issues with Traditional Bank Financing
Conventional is an option for your business financing to solve cash flow issues. Bank loans and lines of credit provide the liquidity to cover payroll and general businesses during the days outstanding (DSO) period. Traditional financing requires established corporate financials, business credit, and a strong balance sheet. Approval for bank lending is a rigorous process and difficult to obtain due to the lack of collateral or high debt-to-income ratio.
- Difficult for startups and small businesses to qualify for traditional financing
- The lengthy approval process with strict approval and qualification requirements
- Requires corporate financial strength: profitability, assets for collateral, debt-to-income ratio, free cash flows, and GAAP financials
- Lenders generally like to work with larger companies that benefit from many products and services.
While traditional may not be the answer for your fiber and utility business, invoice factoring financing is a quick and easy financing facility to obtain working capital.
Benefits of Telecom Factoring Financing
Cash flow problems place fiber utility companies in challenging weekly situations when it is time to pay bills. Invoice factoring financing relieves your cash flow constraints by turning your unpaid telecom invoices into same-day working capital.
Fiber and utility construction companies work with credit-worthy customers making their approval process for invoice factoring extremely easy. Contractors in the industry can finance operations by selling their unpaid invoices for cash funding. The actual process of receiving factoring financing is straightforward.
- The easy and quick approval process, unlike conventional lending.
- Sell your unpaid invoices for immediate cash funding.
- No debt on your balance – no monthly note payments
- Cover weekly payables like payroll funding, insurance, rent, and equipment bills
- We take on the credit – we provide our clients with AR Insurance, adding protection from bankruptcy, insolvency, and protracted slow pay.
Bankers Factoring reviews your online application to determine your approval status. Once we approve factoring financing, we disburse your funds in two transactions.
First is the cash advance up to 93% of your total invoice value. The initial cash advance occurs on the same day as your funding approval. The second disbursement happens when your customer pays the open invoice. Called the discount, we release your remaining AR balance less our small factoring fee.
- Submit an online funding application
- Bankers Factoring conducts invoice factoring due diligence
- Upon factoring financing approval, we direct deposit up to 93% of your total AR value
- Once the customer pays the invoices, we release your remaining balance less our small factoring fee.
What fiber and utility companies qualify?
We work with telecom contractors and companies in many sectors, including fiber, utility, construction, power services, and general installation and repair. The main criterias includes:
- Unencumbered accounts receivable invoices (no liens against business assets)
- No legal or tax compliance issues
- Adequate internal controls to protect profit margins and billing practices
Fiber and utility companies meeting these standards can benefit from the consistent cash flow factoring financing provides. Telecom construction factoring is a great financing option for rapid-growth fiber and utility companies struggling from extending credit terms to slow-paying customers.
Contact our telecom factoring team today. We can strategically discuss your business financial situation and how to improve cash flow. Contact Bankers Factoring.
Factoring Financing Provide the Cash Flow Fiber and Utility Contractors Need
Utility and fiber contractors are essential for our local communities, enabling businesses and households to live a modern lifestyle. Without fiber and utility companies, the power that propels our lives would not be possible. These telecom construction companies have significant cash requirements caused by slow-paying customers with NET60 credit terms. Bankers Factoring invoice factoring provides contractors immediate cash flow to fund operations.
Invoice factoring financing eases cash flow constraints by providing reliable and consistent cash flows. Bankers Factoring has worked with primary and small companies in the fiber and utility space, including ATT, Comcast, Charter, Cox, Windstream, Sprint, FPL, TECO, and Google. Invoice factoring gives fiber and utility companies a competitive advantage through consistent liquidity injections.
Why do fiber and utility contractors need invoice factoring?
- Payroll funding
- Pay weekly bills
- Increase staffing and
- Sales and Marketing
- Equipment and maintenance
- Fast and easy approval for quick working capital
- Cash flow shortages
Bankers Factoring Fiber and Utility Company Factoring
For over 20 years, our team of employee-owners has funded fiber and utility companies with invoice factoring financing. From significant telecom companies to government contract factoring, our factoring programs remove cash struggles caused by extended payment terms and slow-paying customers. Fiber and utility construction contractors depend on consistent cash flow to cover payroll funding and operations expenses. Our comprehensive invoice factoring financing provides more than just cash flow funding:
- We take on the credit risk and provide bad debt protection
- Up to 93% cash advances on the same day as approval
- Outsourced A/R Management
- Flexible lines of financing that grow with your business
- Our seasoned team of professionals with years of experience funding fiber and utility companies