There's no doubt that the construction industry has faced a major slowdown in the wake of the economic recession. As banks have put the brakes on much of their lending for new construction and remodels, they've reduced funding availability for construction industry professionals, dealing what's felt like a double-blow to contractors and builders nationwide. When one of the largest banking institutions exited the financial market in early 2008, many construction businesses crumbled.
Ever since, secondary-market funding options have been greatly limited, according to James Penny, founder and president of Compound Profit, a McKinney, Texas-based franchise that provides funding solutions for businesses throughout the country, specifically those in the construction field.
"Certainly some asset-based lenders exist in the secondary market, however, if a contractor has the assets to back a loan, then it's possible to use conventional funding sources in the first place," Penny said. "While many contractors are caving, others are discovering creative funding solutions—factoring is one of those. Unfortunately, many factoring companies are volume-driven and won't work with small- or medium-sized construction firms, which is where Compound Profit steps in. Our construction factoring service is ideal for those in this industry, and is backed by a comprehensive funding solution that enables companies to obtain working capital and even construction equipment without accumulating debt or sacrificing equity."
With national and international locations throughout North America, Compound Profit has broadened its reach, making it more accessible to the construction industry. Its 300 customer-service-driven representatives are skilled in understanding and facilitating the contractors' complex financial needs. With Compound Profit's support, the funding experience is highly efficient, reliable and professional.
"For years, we've been providing funding and offering factoring services to contractors and sub-contractors, so we understand their requirements and have developed appropriate solutions," Penny said. "Witnessing the current suffering within this industry has been painful, considering we're able to help so many. While our goal is to provide immediate support through factoring and construction-equipment financing, we want these businesses to succeed in the long term, and offer the tools and services to ensure that they do."
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