Finding the Money to Grow Your Restoration Business
Finding cash flow to take on those high-dollar, large loss jobs can be difficult for some restoration companies. It can be a game of doing the work, then waiting to get paid, and many times you need to have enough money in reserves to at least get the job off the ground before insurance money starts coming in.
Genesis Capital Ventures saw the need for cash flow, and is diving into the restoration industry full-force with the goal of helping contractors scale their business. Founder of Genesis Capital Ventures, Jeff Posey, sat down with R&R to talk about finding the money to grow. Here’s what he had to say.
Q: What are some of the benefits of having a company that can help with cash flow?
A: “Some smaller contractors have to turn down large restoration projects because they do not have a large enough credit line with their supplier and they do not have enough capital to execute in a timely manner, while waiting on the insurance companies to pay for the claim. Genesis Capital Ventures can fund insurance restoration projects to the contractor within 48 hours of approval. We provide the cash and an unlimited credit line with their supplier that they need to execute on any size project. The restoration contractor can grow as fast and as big as they want to, without worrying about cash flow problems.”
Q: Please talk about some of the downfalls, or words of caution, when getting financial backing.
A: “When getting financial assistance, make sure you know the terms of the loan or credit line, and make sure you can monitor and collect your accounts receivable in a timely manner in order to pay in a timely manner.”
Q: How can freeing up cash flow help restoration companies scale up to the next level?
A: “We offer the contractor unlimited cash flow to take on larger projects, have multiple projects going at the same time, and concentrate on sales and production rather than chasing down money from the insurance companies and worrying about cash flow.”
Q: Let’s talk numbers: how much assistance, and what are the terms on a broad level?
A: “We do not have a limit on the financial assistance we can give, it all depends on the insurance claim and the time layout of the project.
- GCV charges 10% of the amount funded on each claim.
- The ACV or first check is funded independently of the Depreciation or final check and or the supplement check.
- We wire the money after approval straight into the contractor’s bank account.
- We then invoice the insurance company for the project and collect. We charge $150.00 and 12% on supplements and then once approved we wire the supplement funds into the contractors account at 10%.
- With our supplement program we can add a minimum of 20% to the contractor’s bottom line on each project! It’s a win-win for everyone.”
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