What is Invoice Factoring for Construction Companies
Construction Finance is a funding and support solution that provides instant and ongoing working capital throughout various stages of a construction sector contract.
The most obvious benefit of construction finance is that you get advanced funds within hours of raising an uncertified application for payment or staged invoice. This gives you the freedom to pay costs like staff wages and suppliers long before you get paid by the main contractor. for a number of construction businesses, it’s possible to set up a confidential facility, so your customers won’t know you’re using construction finance.
invoice Factoring for Construction Companies also puts you in a better working capital position so you can take on bigger jobs without worrying about getting paid for outstanding accounts receivable. The cost of construction funding depends mainly on the size of your business, the nature of your trade, and a few other factors like your credit history and creditworthiness. Some lenders are designed to suit larger firms, and others are better at helping smaller businesses — we work with over 20 lenders, so we’ll find the finance that fits your construction business best.
When looking to fulfil contracts, contractors and sub-contractors often find that they don’t have sufficient working capital to pay costs, such as weekly and monthly wage bills, and raw materials. Construction Finance helps by providing upfront funding against certified and uncertified applications for payments and invoices for work completed. This gives businesses peace of mind that they have funding in place at every stage of a contract.
