Contract Financing

BizOne Capital and its lenders have become one of the few providers of contract financing (progressive billing financing) for small and middle size construction and related industries contractors. Currently, this revolving credit line is provided by an embedded facility entitled the Contract Financing Facility.

Contract Financing is available to construction contractors, manufacturers and related industries that need working capital to fulfill their work contracts. Contractors that work on construction projects averaging $375,000 & above often need help managing their cash flow while they are completing the job. Contractors simply cannot afford to wait 30, 45, 60 days or longer to get paid. BizOne Capital can provide access to available funds needed to support bigger projects as well as the ability to get more jobs.

Benefits to the Contractor

• Allows you to obtain stored materials before the work even starts.
• Advances on invoices, up to 80% of invoice amount, to a maximum of 40% of contract being advanced at any one time.
• Credit lines from $150,000 to $1,500,000
• Covers project sizes from $375,000 to $3,750,000
• Contract Financing can be used on both public and privately owned projects.
• Contract Financing can be used in bonded and non-bonded projects.
• Unlike factoring, we don’t purchase your invoices…the invoices are used as collateral and you are only charged on the amount of the invoice that you borrow.
• Contract Financing may be used only for the time needed. There is no obligation to use minimum amounts or for a specific time period.

Additional Benefits

• Enhances your bonding capability…allows you to do larger projects.
  
• Improves your cash flow…allows you to do more projects.
• Since this is not factoring, we do not engage your General Contractor or Project Owner(s).
• Because Contract Financing is contract specific, you can fund multiple projects at the same time. Each project will be underwritten separately.
• Current projects can be financed as long as they are not more than 30% complete.
• Reasonable cost – typically 1.5% to 3% of the total cost of the project.

If your company’s growth has been restricted by a change in your bank’s current lending policies regarding project financing, or if you have been turned down by a bank for a line of credit, perhaps we can help. For a no-obligation, confidential discussion, please call us at 800.747.7304, or email us at info@bizonecapital.com.