Title:

Working on Borrowed Capital

Description:

For a number of companies who have decided to expand their contractor base during a period of mild construction growth, it would seem that some entities are having some issues obtaining successful accounts receivable financing because the payment cycle experienced between the government and various Public Sector Unit contracts has remained rather long and sluggish. This overall slow payment cycle has also been brought into non-governmental sectors and has resulted in a rather long delivery timeframe for some construction companies. To accommodate the need for payments there has been an increase of about fifteen percent regarding sub contractors and suppliers.