The Construction Industry

What is invoice finance for the construction industry?

Construction finance in the form of factoring can be extremely beneficial for construction businesses which are consistently waiting for overdue payment. For this industry in particular, it can speed up processes and alleviate problems releasing cash to deal with subcontractors and finance obtaining equipment and materials; this allows you to concentrate on your current projects and plan for your business’ future.

Whereas invoice discounting can provide you with the cash you need quickly and confidentially whilst also giving you the opportunity to maintain control of your own project and finances. If customer service and client relationships are of particular importance to you, then invoice discounting could be the ideal solution for you.

Construction is a complex industry so we will introduce you to industry-specific specialists who will work with you to make getting construction finance as painless as possible. Factoring is a fantastic solution to helping you fulfil your contracts by having a secure credit facility available. Structured staged payments ensure you get the money you when you need it through the process of your project.

How can invoice finance benefit my construction business?

• Once your facility is agreed, cash tied up in unpaid billing is usually released within 24 hours so you can stay on top of your operating costs and the costs of buying raw materials for your projects. Construction finance enables you to access cash tied up in contractual debt, uncertified stage payments or applications for payment.
• Where previously arranged, the chasing of invoice payments due to you, can be outsourced to your factoring company allowing you to focus on your business. However, if you would like to maintain control of your ledger, then invoice discounting allows for this without affecting your chances of securing finance against your invoices.
• The facility grows with your business so there is no need to regularly renegotiate unlike with a bank overdraft.
• For greater peace of mind the majority of factoring companies offer optional bad debt protection by way of “non-recourse factoring” – a form of credit insurance. You can add this on to your funding facility providing you with peace of mind.
• Regardless of the amount of contracts you have or how big your project is, there will be a factoring company out there willing to provide you with the credit you require.

Why choose us?

Our years of experience have taught us that not all businesses are straightforward and creating a good construction finance package can be difficult. However, regardless we understand that a stable credit facility and cash when you need it is important to all businesses.

We will work with you to understand your business and its needs to put you in contact with a factoring company that will not only be the right fit for you but can offer you the best deal on the market.

To discuss your credit needs confidentially, contact us now to chat to one of our experienced and knowledgeable advisers.