Factoring and financing options for solar installers can help improve cash flow when payments are delayed or when cash flow is tight due to accelerated growth.
Invoice Factoring
The factoring option is designed for solar installers working on commercial projects and billing their customers on credit terms, typically ranging from 30 to 90 days. Please note that billing cannot be under a progress billing schedule.
By utilizing invoice factoring, solar installers can receive immediate cash for their outstanding invoices, allowing them to reinvest in their operations and manage expenses more effectively.
This financial strategy enhances liquidity and enables solar businesses to take on more projects without the burden of waiting for customer payments.
Revenue-Based Financing
The financing solution is a revenue-based loan structured around the monthly revenues of the business. The business should have been operating for at least one year and must have a minimum monthly revenue of $30,000.
This approach offers flexibility, as repayments are linked to the business's cash flow, easing the burden during slower months or temporary cash flow disruptions.
By aligning repayment schedules with revenue fluctuations, solar companies can maintain stability and focus on growth opportunities.
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