RMP Capital Corp.
November 2010RMP Capital Corp is a leading provider of working capital accounts receivable factoring for construction contractors, both general contractors and subcontractors, working on publicly funded projects throughout the United States and Canada.
In addition to the contractor program, RMP Capital Corp is also a leading provider of conventional factoring for manufacturers, services contractors, and service providers, as well as a provider of re-discounting services for other Factors throughout the U.S. and Canada. Additionally, RMP Capital has an extensive Community Bank Program through which community banks are able to provide accounts receivable financing for their commercial banking clients through the RMP Capital A/R Financing Program.
In order to protect against the potential risks associated with advancing funds in return for the “purchase” of project receivables, RMP Capital Corp employs a multi-faceted risk management program that includes extensive financial and performance underwriting of prospective client contractors, initial plan reviews to ensure that the contractor is capable of completing the awarded project(s) for the costs and materials estimated, in the time required, and for a profit, and our Resource Monitoring Services funds disbursement/funds control program, which provides the assurance necessary that funds advanced on projects only pay for job costs on the projects being financed.
A key component of the Resource Monitoring Services or RMS Program is the continuous evaluation of project pay applications against the project schedule of values and site visits by a qualified staff of construction inspectors who compare percent complete documentation against the contract, materials consumed, production scheduled, and costs incurred to date. Additionally, this team of construction professionals periodically evaluates contractor compliance with all OSHA and other contractually safety requirements.
Although factoring of receivables in construction has been viewed with a negative connotation by GC’s and owners in the past due to the lack of control of advanced funds, the program established by RMP Capital can provide an invaluable asset to both owners, GC’s, and subcontractors because of the risk management and control mechanisms and as a way of qualifying contractors for the bonding capacity required for most publicly funded projects. Through RMP Capital’s affiliation with sureties that specialize in the specialty markets, contractors factoring their receivables with RMP Capital will have the working capital needed for job costs and may qualify for their payment and performance bonds, as well.
The availability of working capital is crucial for contractors to be able to participate in this growing publicly funded construction market. Being assured that subcontractors have both the working capital and financial controls in place to properly execute subcontracts is a major concern of general contractors as well. Using or requiring the use of the services of RMP Capital to advance funds specifically to pay job costs through the RMS Program as well as provide the performance underwriting and evaluation tools can provide the assurance the GC needs to be able to subcontract work to emerging contractors who are otherwise qualified. ■
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