Construction Factoring for Subcontractors
Get paid as you bill each phase, not when the GC gets around to it.
We fund subcontractors who know their trade and are ready for bigger jobs. You bill a phase. We verify the work with your general contractor, fund it, and make sure the subs and suppliers below you get paid. Every draw, every job.
How It Works
You finish a phase of work and submit the invoice or pay application
We confirm with your GC that the work was done and approved
We fund it, and the subs and suppliers below you get paid out of that funding
Core Features
Funding That Moves With the Job
Construction pays in phases, so we fund in phases. You get cash as each phase is billed instead of waiting 60 to 90 days on the GC. Land a bigger project and your available funding goes up, because your invoices are bigger.
Risk Checked Before You Take the Job
We check every construction deal against five credit databases. They show us the GC's payment performance on prior projects, subcontractor dispute history and the owner's financial stability. Had trouble with a GC before? Tell us, and we'll check them before you sign.
Five Questions We Ask on Every Job
We look at the whole chain on every construction job, from the owner down to the people you pay.
Who's the owner, and is the project funded?
Who's the GC, and how do they pay?
We check their payment history before a dollar moves.
Will the GC accept our verification?
Before we fund a construction invoice, the GC signs a separate written agreement that says where payment goes and why. It reads a lot like an estoppel letter. We fund once the GC confirms the work was done right.
Have the subs and suppliers below you been paid?
You give us lien waivers from your subs and suppliers on every draw. We know what belongs in that stack. If you roof and nothing in it covers roofing materials, we ask.
Is the job tracking to budget?
We watch the total cost of the project, so nobody gets out past their skis.
We look at the whole chain on every construction job, from the owner down to the people you pay.
Why Most Factors Stay Out of Construction
Every construction job carries an owner, a general contractor, you, and the subs and suppliers you pay. If anyone below you goes unpaid, they can go around you to the GC or the owner and get paid. That chain is why most factors avoid construction.
Banks lend on last year’s results and check in quarterly. We watch your jobs every week. If a GC short-pays you $1,000 on an invoice, we see it right away and ask why. If your pay applications stall, we know in real time.
Why Choose Dare for Construction
Decades Inside Construction Factoring
Our team has factored construction for more than 30 years. Our co-founder worked at the first factoring company in the country to factor construction consistently, back when most factors called it impossible.
We Talk to Your GC the Way They Want
Project managers are under pressure, and verification calls sit outside their day. So we ask up front how they want to be reached: email, text or phone. We keep it to once a month and note it on every project. Your GC relationship stays intact.
Weekly KPI reporting
Cleaner Books Every Draw
No loan on your balance sheet. No fixed monthly payment. Your payables get paid out of each funding, so your books get cleaner as the job moves. If your accounting needs work, our in-house accountant helps you fix it.
Who We Work With
Specialty Subcontractors
- Mechanical, plumbing, HVAC, roofing, drywall, concrete, paving and site work
- Data center subcontractors in a market that moves fast
- Bidding larger jobs in the trade you already know
Growing Contractors
- Taking on contracts bigger than any you've done before
- Told by the bank to come back with two years of tax returns and a clean balance sheet
- Need funding that grows as your receivables grow
Contractors Leaving a Bank
- Your bank capped your line just as your backlog grew
- Your bank lends on last year's results, not this year's work
- Want a partner who watches every job with you
What We Look For
We underwrite three things: the people, the business and the collateral. Character and experience come first. Have you been successful before? Then the business. Can you turn our money, which costs more than bank money, into profitable jobs? Do you keep good books, with good people doing your billing? Then your GCs and owners.
We want to see that you know your trade. A plumber taking on more plumbing is a deal. A plumber who just decided to build bridges is not. A bigger contract than you’ve done before is fine. A totally different environment is not, so we look at where each project is and how it compares to work you’ve already finished.
Success Stories
Factoring Frequently
Asked Questions
Do you fund general contractors?
Can I factor progress billings, or only final invoices?
What do you need from me to get funded?
Will you contact my general contractor?
Can you fund bonded jobs?
What does it cost?
How is this different from a bank line?
How fast can you make a decision?
What if I've had problems with a GC before?
Tell us. We’ll check that GC and the owner against our credit databases before you take the job.
Can factoring help me get a bank line later?
Ready to Take the Bigger Job?
Bring your contract with the GC and your latest pay application. We’ll show you how your next draw would fund and check your GC before you sign.