ALAMO CONTRACTING SOLUTIONS
Working Capital for Subcontractors
A flat-rate business loan secured against your project. Straightforward terms — you borrow, you repay.
Not sure which option is right for you? Most of our clients find the Receivable Purchase Agreement better fits their situation — no debt, no repayment, and we handle collection. The traditional loan is available for borrowers who need capital flexibility or don't qualify for an RPA.
A traditional business loan provides a lump sum of working capital secured against your project and business assets. Rates range from 15–18% of the loan amount depending on your profile and loan size. Repayment terms are set at origination.
Unlike the Receivable Purchase Agreement, this is a loan — it is recorded as debt on your books and you are responsible for repayment regardless of whether your general contractor pays you on time. If the GC is slow, you still owe us.
A personal guarantee is required. Depending on the loan amount and your business profile, we may also require collateral or asset securitization.
With a traditional loan, you retain full collection responsibility. If your GC delays payment, disputes the invoice, or fails to pay, your obligation to Alamo Contracting Solutions remains unchanged. Repayment is due per the terms set at closing — not contingent on GC payment.
This is not a paid-when-paid arrangement. Your loan agreement specifies a repayment period. If you exceed that period, a daily APR is applied to the outstanding balance. The rate is small, but it compounds — and on a large loan, it adds up quickly. The clock does not stop because the GC is slow.
If you want Alamo to take on the collection risk and eliminate that exposure entirely, the Receivable Purchase Agreement is structured to do exactly that.