Construction Finance FAQ commonly asked by our Client’s Customers and General Contractors:
Customer/GC: Will I have to change my contract/subcontract? Subcontractor: No, your contract still has the same legal rights with the subcontractor.
Customer/GC: Is my subcontractor “Selling his Contract” before the work is done? Subcontractor: No, we only purchase invoice amounts for work already completed.
Customer/GC: Will the invoices arrive come from a different person now? Subcontractor: No, your Subcontractor continues to invoice you. Only the remit to address changes.
Customer/GC: Will setoffs or deficiencies be treated differently? Subcontractor: No, it is still the subcontractors duty to complete all requirements of the contract.
Customer/GC: Is Construction Finance a collection agency? Subcontractor: No, we purchase invoices as a Factor for a small discount.
Customer/GC: Do I loose any rights with my current lien waiver process? Subcontractor: No, Construction Finance will not purchase invoices that could potentially involve unpaid suppliers. On the contrary, Construction Finance helps ensure our clients keep all underlying suppliers paid to prevent unwanted liens or bond claims.
Customer/GC: So what really changes? Subcontractor: The Remit to address for your payments to your Subcontractor.