How Factoring Is Keeping New York’s Construction Industry Booming
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Frequent New York City travelers can also look forward to a huge increase in boutique hotels while city-dwellers are expected to have over 90,000 new units to consider renting or buying — including the 85 floors of 432 Park Avenue, the tallest apartment building in the city. Read more!

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How factoring is keeping new york s construction industry booming

How Factoring Is Keeping New York’s Construction Industry Booming

Step outside in New York City and, chances are, you’ll see scaffolding. According to

the New York Building Congress, $40 billion worth of construction projects have

been launched in Manhattan, Brooklyn, Queens, and The Bronx — and construction

spending is expected to increase to $40.8 billion in 2017. It’s official: We are in a

construction boom.

s

Hudson Yards (which recently hit one-third of its full height), the Bryant, just one of

many exciting new projects coming to the island. Frequent New York City travelers

can also look forward to a huge increase in boutique hotels while city-dwellers are

expected to have over 90,000 new units to consider renting or buying — including

the 85 floors of 432 Park Avenue, the tallest apartment building in the city.

Over in Brooklyn, thousands of new residential units are expected to be on the

market, following the completion of projects such as AvalonBay Communities’ new

apartment tower in Downtown Brooklyn and a new Northside Piers high rise at 1

North 4th Place in Williamsburg. Per an analysis by The Real Deal, around 100 new

buildings will offer Brooklynites 14,000 new homes.

Queens is also experiencing its own mini boom — especially in skyscrapers. Long

Island City is welcoming 28 construction projects and approximately 12 mid-rise

hotels. You can see them grow to fruition along the waterfront, Jackson Avenue,

Purvee Street, and Hunters Point.


How factoring is keeping new york s construction industry booming

See also: The Bronx. In addition to several new affordable housing endeavors, a

brand new 40th Police Precinct building is under development along 149th street.

The

BjarkeIngels

Group

is

behind

Simultaneously,YoungWoo& Associates is transforming the former 175,000 square

foot Bronx General Post Office into a hybrid space containing commercial and

residential units as well as a mini post office.

And let’s not forget Staten Island, where the architects at Studio V are building a

new waterfront promenade and mall called The Riverside Galleria, and Ironstate

Development Company recently completed Urby, a hip residential complex catering

to eco-conscious dwellers that boasts of a communal kitchen, an urban farm, and an

indoor apiary. (Yes, you read that right.)

the

building’s

modern

design.

This is great news. It means more revenue for New York and more jobs for residents

— an exciting fact discussed at length at a very interesting event I recently attended,

hosted by the accounting firm Anchin, on the state of the construction industry. The

panelists included Richard T. Anderson, President Emeritus of New York Building

Congress; Cyrus Izzo, Co-President of Syska Hennessey Group; Richard Kennedy,

Chief Operating Officer of Skanska USA Building Inc.; and Carol Loewenson, Partner

at Mitchell | Giurgola Architects, LLP. Their conversation focused on the rapid

increase in construction projects and what is to come in the next few years

In June, the New York Building Congress reported that the number of people

employed by the construction industry was at its highest level since 1975: In 2015

the construction industry averaged an employment rate of 138,200, up from


How factoring is keeping new york s construction industry booming

131,800 in 2008. The New Building Congress also estimated that by the end of 2016,

the city would see close to 147,100 construction jobs.

Considering that the average New Yorkconstruction worker rakes in around

$47,730 a year, the boom is great news for current and aspiring tradesmen and even

better news for construction managers and engineers, who earn a mean annual

wage in New York of $114,330 and $91,110, respectively. But it will also mean more

accounts payable and receivable for companies, contractors, and sub-contractors.

For many involved in the trade, this can mean waiting periods that interfere with

workers’ and managers’ abilities to forge ahead on a current project or dive into a

new one. And waiting periods can hold companies back from staying in the

competitive game of New York real estate development.

Luckily, there aresolutions for those who wish to keep pace with the current

construction boom without going broke: Invoice factoring, cashflow funding, and

working capital financing offer construction companies a competitive edge in

keeping the money flowing no matter how long the period between an invoice being

sent and a check coming in may be. Prestige Capital has been leading the way in

providing these cash flow financing options for over three decades.

When Prestige Capital was founded 32 years ago, we decided to use our knowledge

of how to finance milestone or progress billed receivables to assist clients in the

construction industry who often had a difficult time obtaining financing from banks.

Over those years construction has had many peaks and valleys, and Prestige Capital

has met clients’ needs every step of the way, helping each business turn accounts

receivable into immediate working capital.


How factoring is keeping new york s construction industry booming

Our principals have over 100 years of combined experience funding small and

medium-sized companies across the United States of America. Prestige Capital

stands out from other invoice factoring services by the rapidity with which we close

deals and the straightforward, transparent manner with which we conduct our

services.

This past summer, Prestige was hard at work on a broad range of deals servicing

construction industries paid on milestone and progress billings. Two of our most

notable financing endeavors during this timeinvolved a 14-year-old construction

company based in New York to whom we provided a $1 mm line of credit and five-

year-old concrete contractor who we provided with a $1.5 mm line of credit.

The construction company had been renovating new locations for a popular food

chain and, as the retail chain saw rapid growth in customer interest and new

locations, the company was not able to keep pace with paying invoices.By allowing

for payment terms up to 90 days, Prestige Capital provided liquidity on the backlog

of receivables to give them the cash flow they needed to pay their employees and

keep business growing without placing undo pressure on their customer to pay

early.

The concrete contractor had been using merchant cash advances to finance and

grow their business but needed to pay off high interest rates in order to continue

growing and becoming more profitable. Prestige Capital provided invoice financing

to pay off the contractor’s high interest rate loans, providing them immediate

liquidity to keep up with the rapid pace of their growth at a drastically lower cost.

Prestige Capital does not require its clients to factor all of their invoices. Nor does it

sock clients with complicated fee structures that could hold back managers looking

to move ahead in the construction boom as they lose time trying to understand how


How factoring is keeping new york s construction industry booming

to apply for, submit, and pay off accounts billable and receivable. With us, you won’t

be hit with legal fees, operational audits, or mandatory long-term contract

requirements. Additionally, Prestige Capital empowers clients to choose which

receivables to fund while assuming the credit risk for them.

As always, we are quite responsive and can move very quickly to work with

companies that are creating all of these beautiful spaces that make our city the

unique one that it is. Prestige Capital has funded transactions in as little as three

business days. And our average transactions take between four and five business

days, enabling success in less than one week from an initial phone call.

Learn more about the Prestige Advantage, see if you qualify, find out how you canget

started today, or contact usfor further information.


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