Invoice Factoring For Construction Companies
Invoice Factoring For Construction Companies, cash flow is critical to construction companies and invoice construction finance can help fund the gap. This will help business cashflow between raising bills or applications for payment and getting paid. Invoice Factoring helps take the issues of credit control and the worry of cash coming in to pay wages, supplies and merchants away by releasing cash from tied up outstanding invoice payments.
Fund Invoices for Construction Companies – How does it work?
Running a construction business presents many challenges and getting paid is probably at the top of the list; however, having the right construction finance in place is critical to maintaining sufficient cash flow to meet the demands of running a successful business.
Invoice Factoring For Construction Companies can help you put together a flexible and tailored cash flow finance solution using invoice discounting or factoring. These cash flow finance solutions are often the most effective solution for construction companies and are growing rapidly in popularity. The number of construction companies using invoice finance jumped 27% in 2017.
Staff need paying, tool hire, materials and plant all need to be settled month end before companies are placed on stop, Invoice Factoring For Construction Companies helps overcome this issue by funding your application for payments or invoices.
Construction Invoice Finance is even available against uncertified applications for payment, unlocking valuable cash flow to your business rather than facing delays while you wait for applications to be certified.
Stage payments, uncertified applications for payments, and the contractual nature of debts make it difficult for construction companies to secure construction finance from traditional lenders. Structured staged payments or ‘Applications for Payments’ will be considered for invoice funding, instead of having to wait for the payment to arrive in 60, 90 or 120 days. Invoice funding for construction companies will fund the application, this will provide you with an immediate cash flow solution within 24 hours. This will help towards materials and operating costs to allow the completion of the contracts on time.
Construction Financing – Access to Invoice Funding
This can stop even the most profitable construction firm from getting on with the next job and growing their business. Having immediate access to this cash will allow you to pay for staff, materials, equipment hire and other suppliers required so you can bid more competitively on those large upcoming projects. Just what you need when margins are already tight.
This cash flow solution comes in the form of invoice/application factoring which will help you increase the size of the projects you can take on. Construction invoice factoring allows you to effectively advance the major part of the payment(s) you are expecting to receive from a job you have completed so you don’t have to wait the full 30-120 days and can get on with funding the next project.
It’s not easy to maintain a healthy cashflow and that affects your day-to-day operation as well as your ability to tender for new projects.
Both invoice discounting and invoice factoring provide an immediate cash payment based on of the value of your billing or applications for payment, enabling you to take advantage of preferential early payment discounts with your suppliers, maintain a healthy cash flow and increase your cash flow as your turnover grows.
The fact that the facility is linked with your sales allows you to grow your business without any of the usual cash flow worries. Funding is available within 24 hours of raising a bill or application for payment.
What Do I need to do to get Invoice Factoring for Construction Companies
The process is really simple to receive Invoice Factoring for Construction companies. If you invoice your clients or use application for payments, Invoice Factoring will work for you and your business. Simply complete the online enquiry form. Once we have received it a funding expert for the construction industry will call you by return.