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COMMERCIAL FUNDING NETWORK, INC 1-800-503-1972 1-212-658-9003 fax "independent financing for your business growth"
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PO Box 9584 Niskayuna, New York 12309 home page contact us sitemap search this site
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Click below for links to:
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Contract Financing Facility (CFF)
frequently asked questions
What is contract financing? The Contract Financing Facility is not Factoring, we do not purchase your invoice(s) at a discount, we do however, use the accounts’ receivables as collateral. Additionally, we do not engage your General Contractor or Project Owner(s) as in the case of factoring. The Contract Financing Facility can be used on both Public and Privately owned projects. The Contract Financing Facility can be used for Bonded and Non-Bonded Projects. The Contract Financing Facility supports both Sub-Contractors and General Contractors. The Contract Financing Facility is underwritten in house: Financially and Technically. Technical underwriting for project and project owner is done by a Third Party Engineering Company. The Contract Financing Facility is monitored by specific project use and by product design, and does not allow the client to be in default. In addition to regular cash flow, funds can be used for pass through stored materials and equipment specifically being used for that project. The Contract Financing Facility may be used only for the time needed. There is no obligation to use minimum amounts or for a specific time period. All funds are managed by a controlled account at JP Morgan Chase.
How much does contract financing cost? The overall financing cost per project may range from 1.5% to 3% of the total cost of the project.
How long does it take to receive a pre-qualification and proposal? From the moment all of the information above is presented, it will take 24 to 72 hours to issue a proposal (Pre-Approval).
What is a pre-qualified proposal? A proposal (Pre-qualified ) means that the company has been evaluated and we are 90% sure that the facility line extended is accurate. All we need to do is the final due diligence; to confirm that information presented by client is accurate and correct. The Technical underwriting is not done at this phase, therefore, if for any reason a project or owner is not approved, we will just have to move on to the next project—the crucial thing here is that the company is approved financially and that the projects are viable.
How many projects can we finance at one point through this facility? We can finance multiple, on going projects, as long as their completion percentage is not greater than 30%. We can finance all new projects.
Does this facility pay off existing credit facilities? Yes, we can pay off your existing credit facilities with a bank or any other financial group.
How long does it take for final underwriting, documentation and funding? From the moment the proposal, application and underwriting, and additional information required for final underwriting is received, it will take approximately three weeks for final due diligence, technical underwriting, and documentation and funding. |
