Construction Factoring Finance

It can be difficult to source finance for construction projects however a few of our invoice finance partners are able to offer Construction Factoring Finance.

How Construction Factoring Finance Works

Construction Factoring Finance operates in a similar manor to a normal invoice finance facility. However, the invoice finance company will often involve a quantity surveyor who has the expertise to value complicated construction related deals, unlike a conventional invoice finance company.

The invoice finance company can typically fund up to 70% of the value of invoices, as they are raised, with the balance being paid to you once the customer pays (less charges). This can release a significant amount of cash for any use within your business.

There are a number of product options that are available including collection of the outstanding invoices and bad debt protection (non recourse) if required. The credit control collection of outstanding sales invoices can be handled on a completely confidential basis so that your customers are not aware that are using a construction finance facility i.e. the factoring company undertakes the credit control function in the name of your business so your customers are unaware.

Which Businesses are Elligible for Construction Finance Funding?

There are a number of different sectors and trading methods that may qualify for Construction Factoring Finance but would not qualify for normal forms of invoice finance. The following situations are suited to Construction Factoring Finance:

  • If you have a CIS UTR number.
  • If you raise applications for payment - these can be considered for funding even if they uncertified applications for payment.
  • Invoices raised on a stage payment basis - invoices that are raised in stages during the course of a contract that has not been fully completed may be eligible for funding.

The following sectors may also be eligible for funding:

  • Construction contractors
  • Construction sub contractors
  • Construction of partitions
  • Plastering
  • Diamond drilling
  • Tiling
  • Dry lining
  • Demolition
  • Shop fitting
  • Supply and installation of bathrooms
  • Supply and installation of kitchens
  • Supply and fit of double glazing
  • Joinery
  • Traffic management
  • Flooring
  • Scaffolding
  • Landscaping
  • Decorating
  • Fabrication of steelworks
  • Earthworks
  • Interiors
  • Property refurbishment
  • Painting
  • Electrical contracting
  • Ceilings

What Next

If you think that Construction Factoring Finance could suit your business please contact us for a free quotation search.