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Winter Solstice

December 21, 2018 Uncategorized 0 Comments

  May your day be merry and dark. In all seriousness, it will be 100 degrees and sunny soon enough. 

Construction financing factoring

 

May your day be merry and dark.

In all seriousness, it will be 100 degrees and sunny soon enough.  For now, grab a cup of cocoa and enjoy the stars, because tonight will be the longest night of the year.

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Tacky Christmas

December 19, 2018 Uncategorized 0 Comments

As those of you who spend much time talking to me have probably already come to realize, I kind of

As those of you who spend much time talking to me have probably already come to realize, I kind of like Christmas.

Actually, I really like Christmas.

Fittingly enough, I did my best to force everybody else in the office into sharing my Christmas cheer.

The results were…mixed.

It turns out, accountants and underwriters are exactly as jolly this time of year as they are every other day of the week.

Le sigh…

The good news, however, is that I did manage to force John and Rachael into joining my dorkiness…because they are the greatest!

Is this a financial services company, or is this GQ?  It’s just so hard to tell…

Personally, from my end, it was pretty tough to decide whether to go into commercial finance or settle for being a supermodel.  I like to think I made the right decision.

(Side note: Please ignore the colorful mess!  When it comes to Tacky Christmas, I come prepared with enough tackiness for all of Arkansas.)  

Sadly, these are all of the pictures that we have, because people had to go back to doing actual work stuff, but I’m still considering this a win in the ‘holiday cheer’ department.

Now if anybody needs me, I’ll singing along to ‘Santa Baby’ as I go over expense reports.

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Office Addition

December 16, 2018 Uncategorized 0 Comments

This week at Construction Finance, we’re enjoying our last week with our head of underwriting….or, to be more precise, our

This week at Construction Finance, we’re enjoying our last week with our head of underwriting….or, to be more precise, our last week this year.

Yes, she will be back next year, and the Construction Finance family will be one person larger!

We have an office bet going on right now as to when, exactly, Baby Max will be joining us.  But, whenever he comes, we’ll looking forward to meeting our new junior risk management associate.*

*That said, take your time, Max.  I went long on this bet, and I’ve got $40 riding on the idea that you’ll make it to your due date!   

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Smooth Sailing: An Overview of Factoring

December 12, 2018 Uncategorized 0 Comments

    An ironic part of this blog is that I spend very little time covering what our company does.

 

Construction Finance Factoring

 

An ironic part of this blog is that I spend very little time covering what our company does.

I share things I read about in The Wall Street Journal.  I ramble on mindlessly about the history of construction equipment.  I talk about my job, and my dog, and the things sitting on my desk.  But, I spend very little time talking about what we actually do, or why factoring can be a good choice for those in commercial construction.

And so, in short for those of you who are unfamiliar with factoring, what we do is lend against money that you’ve already earned, but that you won’t be receiving for another 30, 60, or 90 days.

……….

In commercial construction, this is a common scenario:  You submit your invoice or pay app to the general contractor.  The general contractor approves it a few days later.  Then, they submit all of the pay apps for that month to the owner, who then submits everything to the bank, and then…I don’t know.  As far as I can tell, nobody knows.  Those pay apps all just sort of sit somewhere, waiting for somebody to eventually release payment to somebody else.

Depending on the payment terms of your contract, things may hang out in limbo for as little as a week or two, or for as long as three months, and during that time, there isn’t much that you can do about it.

This is where factoring comes in:  As long as your general contractor can sign off saying that the pay app is correct, and that they’re eventually going to pay you for the work, we can go ahead and advance you a percentage of the invoice amount. Then, when the time comes, your general contractor will simply release the check to us instead of you.

By doing this, you have the money that you need to handle payroll, cover overhead, and negotiate supplier discounts.

Those benefits are obvious, and they make up the core purpose of factoring.

What we aim to do, though, is to provide as much additional value and security as possible–after all, we succeed when you succeed.

This is why for no additional charge, we’re more than happy underwrite account debtors before you sign on the dotted line to begin a million dollar job–we want to make sure you’re working for people who will actually pay you, whether we’re factoring on the project or not.  We also have an office full of accountants who will happily help you with your bookkeeping and pay apps, and who can advise you on which jobs seem to be most profitable. We can help manage lien waiver and supplier payments, making sure that jobs aren’t held up by frozen accounts or supplier liens.  And, when worse comes to worse, we also have yours truly.

A lawyer.

Right here.

In the office.

That you can call anytime.

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Santa’s List Day

December 4, 2018 Uncategorized 0 Comments

  According to the great trove of knowledge that is Google, today is Santa’s List Day! That means it’s…time to

Construction finance factoring

 

According to the great trove of knowledge that is Google, today is Santa’s List Day!

That means it’s…time to make your list for Santa? Santa’s day to check and see if you’ve been naughty or nice?  Something completely unrelated to Christmas, like the day that Santa makes his grocery list for Mrs. Clause?

I don’t know, really.

But either way, that’s what today is!

Personally, I’m going to go with the first option.

After all, I love asking for stuff.  It’s so much easier than the boring alternative of (1) seeing something that I want (2) checking my bank statement, and (3) realizing that whatever it is ain’t gonna’ happen.

Unlike my AmEx, Santa can make things happen. I know he can. I’ve seen the Mercedes commercials.

In all seriousness, let us know if there’s anything we can do to help make your Christmas dreams come true.  More importantly, though, go give your family and friends a hug.  Put a dollar in the Salvation Army kettle.  Sit down with a glass of egg nog and admire the tree you spent all day decorating.  Go make the most of this Christmas season. That’s what the holidays are really about…not shiny cars with giant red bows.

However, if you want to ask Santa for a Porsche and Patek Phillipe, I won’t judge.  After all, today is the day for those requests.

 

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Happy Thanksgiving

November 21, 2018 Uncategorized 0 Comments

Here at Construction Finance, we have a lot to be thankful for. Our wonderful families. Our lovely work family. Our

construction factoring finance

Here at Construction Finance, we have a lot to be thankful for.

Our wonderful families.

Our lovely work family.

Our hardworking clients who make everything possible.

So to all of you, thank you!  Thank you for your business.  Thank you for going out there every day and building the things that need to be built. And to paraphrase Mr. Rogers, thank you for being you.  Because the men and women we work with every day are part of what make this job so great.

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Maximizing Your Productivity

November 18, 2018 Uncategorized 0 Comments

I’m going to be honest:  Some days, I’m not really sure what to blog about. I mean, I’m a lawyer

construction financing factoring

I’m going to be honest:  Some days, I’m not really sure what to blog about.

I mean, I’m a lawyer by trade.  Figuring out how to create a blog about construction that people actually want to read…well, that’s a bit outside my area of expertise.

There is one thing I know, though, and that’s that I care.

I care about everybody having the money they need to support their families.  I care about making sure people know about lien rights, and what contract clauses to watch out for.  I care about making sure job sites are safe. I care about owners and comptrollers being aware of their financing options.  I care about doing all I can to encourage good practices, both in life and in business.

And, in that spirit, I like to share anything I can that seems like it could be helpful, even if it does fall a bit outside of my usual purview.

It’s Not Time You Need To Manage, It’s Your Energy

This article is courtesy of Jobsite, and while a few parts may be unrealistic, it’s well worth the read.

The part about ‘Harnessing Meaning and Purpose’?

Meh, good advice, but not 100% applicable to all of us. (Personally, I would have loved to have been an engineer.  That 23 on the math section of the ACT told me it might be wise to consider other avenues. Being a supermodel also sounded pretty great. That idea…was even less realistic.)

On the other hand, eating right and getting enough sleep?  That’s a good one to put in place.  Focusing on one task at a time? Also a very sensible goal.

The truth is, there are some things we can’t control.  Often, the hours of the working day are dictated by people far higher up the chain than we are.  The nature of our jobs? That tends to be a balancing act between personal desires and the hard realities of life.  Even on the ones where the ball is theoretically in our court, sometimes things happen (I’m looking at you, random mosquito that kept me up half the night, even though this is obviously the wrong season for mosquitos.)

However, other things are well within our domain.  So please, eat a salad.  Get some rest.  Think about how the tasks of the day be can scheduled so as to maximize productivity.  Try to forget about that fight with your spouse last Friday. All of those things are killing your energy, and making life even more exhausting than it needs to be.

 

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Snow Day

November 15, 2018 Uncategorized 0 Comments

As those of you who paid attention in geography may have already noticed, some places are known for snow:  Michigan. 

As those of you who paid attention in geography may have already noticed, some places are known for snow:  Michigan.  Wisconsin.  Minnesota.  The North Pole.

Other places…aren’t.

Arkansas would be one of those places that isn’t.

Well yesterday, it snowed.

construction factoring

Roughly three snowflakes in, we were done working.  Or at least I was.  After all, IT WAS SNOWING!!!!

Better yet, it just kept snowing!

construction factoring

We got to live in our very own snow globe…albeit probably one from the clearance section, since ‘office building snow globes’ haven’t really become a The Must-Have Thing yet.

Still, it was pretty much amazing.

 

Of course, now the snow is already melting, and we’re back to being productive people, but for one lovely day, we had snow.  And our mittened fingers are crossed for more.

 

*Obligatory sidenote:  Yes, we do have more than two people in our office.  Oddly enough, though, some people would rather sit at their desks and do their jobs than pose for pictures.  I…don’t what’s wrong with them, really. But it’s okay, because their productivity gives me more time to buy snowflake sweaters and try to catch snowflakes with my tongue!

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Opioids: The Tiny Elephant

November 11, 2018 Uncategorized 0 Comments

Construction is a great industry. Unfortunately, like every industry, it has the occasional elephant in the room that we don’t

Construction Finance factoring opioid epidemic

Construction is a great industry.

Unfortunately, like every industry, it has the occasional elephant in the room that we don’t really like to talk about.

Right now, in construction, much like in the rest of America, one of our biggest elephants is (ironically) small, and known for pairing well with a morning glass of grapefruit juice.

Specifically, as an industry, we’re facing an opioid epidemic.

Thanks to a combination of demographic factors and practical realities, construction has one of the highest rates of opioid dependence in the country. (Awareness The First Step for Construction Industry ) For decades, a steady flow of prescription painkillers made their way from doctor’s offices to jobsites, allowing workers to keep welding beams and hanging sheetrock as their muscles and joints protested.  The pills were cheap. They were readily available. And they made it possible to get back to work faster; to put in longer hours than what fallible bodies would allow.

And, years later, we’re dealing with the fallout of that.

Unfortunately, this is also a problem for which there is no easy solution: Official reports put the rate of opioid dependence among construction workers at 1.3%, second only to the recreation/entertainment/food business.  In reality?  The numbers are probably higher. On most jobsites, it’s a given that at least one or two workers are under the influence.

However, the first step to tackling the problem is admitting that there is a problem.

If we want to cut down on absenteeism and worker’s comp claims; if we want to quit losing employees to addiction, we have to admit that the problem exists.

And then, company by company, we have to figure out the best way to address it.

If you’re a construction company owner, go out to the jobsites.  Get to know the people working for you. Create an environment where people can feel comfortable talking about the issues they’re facing.  Be on the lookout for signs of trouble. Talk to your foremen about the signs. Have a plan of action in place.

The specifics are up to you: What works for one company won’t work for another.  But whatever you do, please do something. It’s not just good for the bottom line.  It’s also the right thing to do.

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Make America A Country You’re Proud Of

November 6, 2018 Uncategorized 0 Comments

Growing up, my parents always taught me that it’s impolite to talk about money, religion, or politics in mixed company.

Growing up, my parents always taught me that it’s impolite to talk about money, religion, or politics in mixed company.

Well, I work in finance, so the first item on that list went out the window a long time ago.

As for the other two, well, I think the key is being respectful.

I’m not here to tell you who to vote for.  I’ll leave that task to your annoying Facebook friend who’s posted 300 political memes in the last two days.

What I will tell you to do is go out and vote.

………………….

One of the greatest things about this nation is that we all have a say.  Our individual voices may not be loud, but they count.  And one by one, they add up.

So please. Whatever you do today, and whoever you support, go out and make your voice heard. It’s people like you who make America great, and nation needs your voice.

 

 

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