Hiring subcontractors is a common solution to meeting the demands of a growing business. It’s important that work performed by subcontractors is satisfactory to you and your customers, and that there are no misunderstandings regarding your billing and payment rights. These items are customarily addressed in written agreements between companies and their subcontractors.
If you are subcontracting your work, it is important to ensure timely payments to your subcontracts in efforts to avoid liens – which can ultimately lead to payment issues. Scale Funding recommends that you require lien wavers when payment is satisfied to a subcontractor. If an effort to avoid any payment delays, Scale Funding can assist in the management of your payables with accounts receivables financing.
We recommend that you seek legal guidance to ensure that your agreement includes the proper provisions to keep you and your subcontracts in compliance. Please be sure to provide them with any agreements you may have between you and your customers – doing so will help to ensure that compliance is met in regard to the terms and obligations outlines in the agreements.
Waiting for customer payment can make it difficult to pay your subcontractors on time. It can also causes unneeded stress and sometimes a negative cash flow statement. Scale Funding can help you keep a consistent, steady cash flow by factoring your invoices. Call 800-707-4845 today to learn more.