?> Avalon Funding Corportaion Construction | Avalon Funding Corporation




As you are aware, funding the accounts receivable of a construction contractor is a difficult business that is avoided by most factors and asset based lenders? Only the largest and most stable of these firms qualify for bank funding. What about the other 90% of the firms operating in this industry? It makes no sense to us that skilled contractors in a booming industry are essentially “cut-off” from the type of asset-based facility that have been proven in other industries to help companies grow and prosper.


Other factors take a “sledgehammer” approach to construction. They will finance an invoice only with a signed “no offset” letter from each project manager. Imagine the disruption this can cause, not to mention the “red flag” that is likely to catch the attention of the project owner. We think this approach is absurd. We reject the heavy-handed verification techniques employed by these “invoice discounters”. Our programs has the look and feel of a bank line of credit, only with far greater availability and flexibility.


There is a clear-cut need for working capital among construction contractors. These are labor intensive businesses with weekly payroll demands, yet their receivables can drag beyond thirty and sixty days. With the threat of mechanics liens or contract default due to job interruption, stretching payables with sub-contractors or suppliers is not a viable option. Our typical client is a sub-contractor who was forced to turn away lucrative opportunities due to concerns about managing the burden of carrying the receivables.