WHAT WE DO
Are you tired of waiting for insurance carriers to pay your outstanding invoices? You’re not alone.
Sell your restoration insurance claim receivables to Blackwater to convert your insurance receivables into immediate working capital.
Invoice Factoring Service
for Restoration Contractors
No loans
No debt
No personal guarantees
Most covered-loss restoration invoices can take weeks to settle with an insurance carrier, and even longer to get paid. You never really know how much the carrier will pay and when you’ll receive payment.
These uncertain and long payment cycles can put you in a constant cash crunch, making it hard to keep up with critical day-to-day expenses or invest in growth.
Eliminate the wait by factoring invoices with Blackwater.
Eliminate the Wait
What is Invoice Factoring?
Invoice factoring is the sale of a qualified receivable. You sell your insurance claim receivables arising from covered property losses to a Factor to receive an immediate cash advance.
Because it’s a sale and not a loan, factoring won’t impact your credit like traditional bank financing.
Invoice factoring is an attractive alternative when disaster restoration contractors need quick and reliable access to cash.
We Buy Restoration Invoices for Cash
Unlike generic factoring companies, we focus exclusively on restoration contractors. We understand the complexities of insurance billing and the importance of maintaining cash flow.
We purchase claim receivables arising from covered property losses with an open insurance claim. We don’t purchase invoices written to a property owner, and we don’t purchase bad debt or uncollectable invoices.
We provide factoring solutions tailored to meet the unique needs of your restoration business, including:
Spot Factoring: Sell individual invoices as needed.
Ledger Factoring: Sell a portfolio of qualified receivables.
FEMA Invoice Factoring: Sell invoices tied to FEMA-covered losses.
Move Your Business Forward
Immediate Cash
Factoring provides immediate access to working capital. No more waiting weeks and months to get paid. Get the cash you need to maintain daily operations and grow your business!
Eliminate Billing Hassles
No more haggling over invoice line items and payments.
Protect Your Reputation
Blackwater works to foster good relationships with insurance companies and related parties on each claim. You have a professional advocate in your corner who is eager to protect your reputation.
Factoring Can Be Your Strategic Cash Flow Solution
Factoring with Blackwater can be a great cash flow solution for restoration businesses of all sizes and stages of growth. Factor invoices periodically, or as your preferred way to operate.
How the Process Works
Step 1 You perform and document work
Complete and document restoration work in the field. Before submitting an estimate for factoring, contractors must obtain a signed Assignment of Benefits (AOB) from the insured property owner.
This allows the contractor to receive insurance claim proceeds directly, which enables Blackwater to purchase those rights. See more about AOB requirements here.
Step 2 You Submit the Estimate Package
Upload to Blackwater a preliminary estimate or settled invoice (or ask us to make one), job scope, supporting field documentation, required documents, and a signed Assignment of Benefit (AOB). An estimate is an invoice with unsettled face value.
Step 3 Advance Evaluation
We review the submission same day, and if approved we issue an Advance offer of cash as consideration to purchase the estimate. Advance offer amounts are typically based on the estimated claim value and underwriting review.
Step 4 Accept the Offer
You accept or reject the offered Advance. When you accept the Advance the estimate or invoice is sold to Blackwater and we become the legal owner of the receivable. We settle the receivable with the carrier and collect payment directly from the Carrier on our own behalf.
Step 5 Carrier Settlement & Reconciliation
When we receive the full settled amount from the carrier we reconcile the account and pay (or debit in rare cases) any balance due to you less our factoring fee.
Frequently
Asked
Questions
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It depends on several factors such as the nature of the field work, the carrier, documentation quality, claim status, job workmanship, and underwriting review to name a few. Each submission is evaluated independently before an offer is issued. Typical Advance amounts are 60% to 80% of the preliminary estimate, but may vary.
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Submited Preliminary Estimates are typically evaluated same day, with funding following acceptance within 2-3 days.
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After Blackwater receives final payment for the settled amount. At that time, the account is reconciled and any remaining balance due to you (less our factoring fee) is released to you.
This method preserves upside for both parties.
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All reconciliation terms are clearly defined in the factoring agreement prior to funding. At the time the estimate is purchased, the full and final invoice face value amount is not known. Therefore, the final settled amount may be less than the submitted Preliminary Estimate.
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If a claim is denied after the invoice has been sold, Blakwater will charge back amounts paid to you in relation to the denied claim and ownership of the invoice will revert to you.
Other charge back events are listed in the Blackwater Factoring Agreement and may be incurred upon the occurence of such things as disputes between you and the property owner, deductibles due, no coverage, poor or misrepresented workmanship or impairment.
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Yes. Factoring involves an advance on estimates that may take time to settle. We require confirmation that each applicant operates a financially stable and legitmate business. Basic financial data allows us to verify that your company manages funds responsibly, has no undisclosed liens or tax issues, and can cooperate effectively in resolving charge backs or disputes if they occur.
This protects both you and Blackwater by reducing the risk of uncollectible receivables. It helps ensure smooth ACH and UCC processing.
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Yes. Under Article 9 of the Uniform Commercial Code (UCC), a factor may record a UCC-1 Financing Statement to show its security interest in certain assets. Blackwater files this notice to protect its ownership in purchased invoices and related proceeds. The filing does not place a lien on your personal property or equipment; it simply establishes our legal right to collect the specific receivables we purchase from you and prevents double assignment of the same receivables. It is a normal and necessary step in every professional factoring relationship. The presence of pre-existing UCC-1 statements recorded on all ‘accounts and proceeds' may be disqualifying.
More details on these topics are provided in the Factoring Agreement. A copy
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Blackwater agrees to purchase Preliminary Estimates without recourse, except as otherwise noted in the Blackwater Factoring Agreement.
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No.
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No. We operate professionally and within industry norms. The carrier pays the legal owner of the receivable pursuant to the Assignment of Benefit. In the event they don’t, a chargeback of all or part of the Advance may be warranted.
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No. Spot factoring allows yo uto submit individual invoices. You decide which receivables to sell.
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Once purchased, Blackwater becomes the legal owner of the claim receivable.
