COMMERCIAL FUNDING NETWORK, INC

1-800-503-1972

1-212-658-9003 fax

"independent financing for your business growth"

PO Box 9584

Niskayuna, New York 12309

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Contract Financing Facility (CFF)

Eligibility

Frequently Asked Questions

Request Application Here

Commercial Funding Network participates with a national non-bank capital source that uses a unique underwriting process to provide financing for contractors, sub-contractors and transportation companies. This process relies heavily on your company’s technical and project performance capabilities and track record rather than exclusively on your business credit history.  

This program is a good substitute for a revolving line of credit; however it is still based on the specific contracts that are part of the facility. The CFF can be used on both public and private projects as a means of supporting local contractor participation on medium to large construction projects.

There are two main advantages to the CFF program:

• In-house underwriting capacity means that we control and administer the underwriting criteria used to determine whether or not a contractor is qualified to obtain financing. This in-house authority has enabled us to develop program protocols more appropriate for the small to medium construction market.  For example, many contractors have the technical capacity to perform the work, but have some kind of financial capacity issue. We have been able to negotiate protocols which allow us to provide financing to financially-challenged contractors while still minimizing risk of loss or default.

• Costs of funds obtained through the CFF are significantly lower than the costs of funds charged by factoring programs. This enables small contractors to obtain the funds they need without sacrificing profitability.

Call us today 1-800-503-1972 Here's what we ask for to pre-qualify your company and prepare a proposal:

Funding for Stored Materials and Accounts Receivable

Contract Financing is designed to help contractors take on larger projects and to successfully complete those contracts on budget. Contract Financing gives contractors confidence that they will have enough funds to cover their costs for supplies and equipment on a project all the way through to the end of that project. This facility includes funds for stored materials needed before actual construction begins, provided that an invoice can be provided for these materials as well as financing for approved invoices.

Secured Advances for the fulfillment of the contracts

As invoices are issued, 80% of those amounts can be advanced as per your request. The maximum amount of funds advanced at any time can not exceed 40% of the total contract amount.

Eligibility

Basically, any contractor working on a public sector or large private owner contract may be eligible for this facility. Unfortunately, we cannot finance residential construction unless it sponsored by a Housing Authority or funded by HUD. Approved contractors can receive a financing facility of up to $3,000,000. Repayment of the advance does not have to come until invoices are paid by the contracting authority.

Overall Contract Financing Cost

By utilizing this facility, your overall contract financing cost may range from 1.5% to 3% depending on funds utilization.

General Contractor Benefits

Utilize More Local Subcontractors to Increase Diversity and Minimize Risk

Every general contractor is aware of the importance of utilizing local, small and more ethnically diverse subcontractors; even in jurisdictions where such requirements are not legislated.

Why? Because it is simply the right thing to do and it can make good business sense as many of these local companies can offer good service at lower prices.

So why do general contractors have trouble finding qualified subs to work on their projects? It is often because smaller companies do not have the necessary cash flow to survive while waiting for outstanding invoices to be paid.

Increase the Talent Pool through Contract Financing

A Contract Financing Facility solves these problems by providing funding for qualified contractors to take on your jobs. We provide funding for both stored materials and account receivable financing. This facility will enable you to work with local, small and diverse companies in a financially safe environment.

We Help You Screen

Since the underwriting criteria is centered largely on your ability to complete the jobs we fund for them, we are particularly thorough in qualifying your company. We contract with construction experts to analyze your capabilities before approval is granted. We also thoroughly verify your business history of completing the jobs you start.

Call us today at 800-503-1972

Thank you