Frequently Asked Questions

How is Struxtion different than a factoring company?

When factoring companies take ownership of an invoice, they contact the GC to say they own it. The GC pays the factoring company for that invoice. This wreaks havoc on the GCs books and creates a risk to your reputation as the contractor.

Struxtion’s solution is different. And better. Although you will let your GC know that you have new lender and provide them updated bank account info, the account is in your name as the contractor, therefore the GC doesn’t have to make any changes to who they are paying, and this makes a HUGE difference to them.

In addition, Struxtion utilizes technology and data to lower the risk and thereby the cost of lending you the money you need to run your business is typically half of the cost of traditional factoring businesses.

How does Struxtion’s pricing and payment of financing fees work?

The benefit of the Struxtion solution is that we establish pricing on a project-by-project basis.  Utilizing the invoice or project details that you provide, Struxtion identifies the GC and developer associated with your project.   Struxtion gives you the benefit of working with well-established GCs, developers, and owners and that is reflected in great pricing.

Another benefit of the Struxtion solution is how we collect our financing fees.  Rather than accrue interest that you must pay monthly, Struxtion receives our payment for the money we advanced when the GC pays us.  This is a tremendous benefit to you as you don’t need to plan for a month end interest expense.

I wasn’t approved by my bank, will I be approved by Struxtion?

Just because the bank did not approve you does not mean Struxtion will not approve you. We look at specific industry factors that banks do not consider when going through the approval process. If you are working with a reputable GC and developer, we will likely approve you.

In fact, Struxtion’s mission is to help you build your credit while gaining access to credit.   This is a novel concept.  Banks aren’t flexible and they only offer two options, YES or NO.  Unfortunately for contractors the answer is most frequently No.  Struxtion recognizes that not all Contractors are a perfect fit for banks, but we can get you on the platform borrowing money, and as you perform, we will lower your rate and increase your line of credit.   Banks don’t have this kind of flexibility.

Can my credit limit be increased?

Remember when you got your first credit card? The limit was small, but over time, the credit card company increased your credit limit as you showed responsibility.  Struxtion works much in the same way. We may start off with a smaller limit, but as we work together and build history, we will increase your limit. Also, like the credit card company, as your “score” improves, we will lower you rate. It’s a win-win.

What rates should I be expecting?

Struxtion offers rates as low as 6% which is equivalent to less than ½% of the invoice value. Of course, not every contractor and project will qualify for this rate, but it’s our goal that as we work with you on the platform over time, we will get you there. That’s another major differentiator. We want to lower your rate and we are transparent in what it will take to do that through our “Struxtion Score.” As your score improves, so does your rate!

On average, you can plan for about 1% of the value of the invoice.

How long will it take for me to get my money?

Once Struxtion completes the user-friendly onboarding process, we can provide you cash in soon as 24-hours after invoice submittal.

Will my GC know I took financing?

GCs know that contractors need access to capital. Let’s face it, contractors bear the brunt of the working capital needs of all commercial construction projects.   Struxtion actually seeks out GCs that want to help their contractors get access to working capital.  When Struxtion knows that a GC has approved a contract or an invoice, we can offer you a lower rate. Preferred GCs have access to the Struxtion platform making it incredibly easy to get your cost lowered, which in turn helps them over time. Well capitalized contractors are the best performing contractors and GCs know that.

How long will it take for me to get my money?

Once Struxtion completes the user-friendly onboarding process, we can provide you cash in soon as 24-hours after invoice submittal.

My current LOC isn’t enough? Can I still use Struxtion?

You may want to bid a job that would stretch you further than your LOC max could support. Struxtion can help bridge this gap. Often, we can take out your existing lender and significantly improve your line of credit. However, if for some reason it doesn’t make sense to pay off your existing lender, Struxtion can provide project level financing for a specific opportunity.

In addition, Struxtion provides a finance platform that keeps all of your documents in a financial vault for easy access. Even if you never take a loan from Struxtion, this value alone is worth signing up!