Construction Industry

  • Funding secured against existing and future contracts, JCT contracts will be considered
  • Up to 75% can be made available against each invoice or application submitted
  • Funding against applications and staged payments
  • Confidential factoring facilities can be provided
  • All accounts are online making the funding process quicker

 

Being involved in the construction industry can be like a rollercoaster ride, one minute you have no work, the next you have so much your scratching you head wondering how you will fund it, projects and contracts you had tendered for suddenly come back for completion. No working capital can often mean long delays in the payment chain triggering cash flow problems.

These conditions are often only temporary but upholding regular working capital that allows construction professionals to continue functioning at times can be tricky. Having tried the bank and other funders and the mere mentioned of JCT contracts, being paid in stages and applications for payment and suddenly no one can help.

 

“You don’t have sufficient security to offer us Mr….”

“I’m sorry but your customers are paying you in stages and by applications” 

“JCT Contracts, I’m sorry that’s too much of a risk”

 

Don’t feel as though you cannot get the support you need, we can help, over the last few years there has been a number of lenders willing to support those businesses who are working within the construction industry or who have to work on lengthy contracts.

 

How does Construction Factoring work

The problem with many contractors or sub-contractors is often working within the parameters of a JCT contract and the associated complexities and challenges it provides. The purpose of the JCT contract is to improve the quality and standards within the construction industry, however the reality is typically far more challenging than this. 

Construction factoring can help speed up this process, enabling contractors of all sizes to maintain a credit facility secured against the contracts, allowing you to continue working on existing projects, allowing you to pay contractors and suppliers on time whilst helping you plan for future work.

Most of the providers will work alongside quantity surveyors who review the contracts you have and will suggest a suitable level of funding against each contract, this can range from 25%- 65% depending on the complexity of the contract, what type of work is being undertaken and the terms and conditions within the contract itself.

Structured staged payments or ‘Applications for Payments’ will be considered for funding, instead of having to wait for the payment to arrive, funding the application will provide you with an immediate cash flow solution to help towards materials and operating costs to allow the completion of the contracts on time.

Most facilities for construction will be confidential and allows your company to retain its credit control function, for example; you will still be sending out your own statements and carrying out your own credit management, a particular advantage if you wish the facility to remain truly confidential.

 

Bad debt Protection 

Bad debt protection gives peace of mind as it protects your business against the risks of one or more of your customers failing through insolvency or undisputed debt. It is particularly prudent if you are only trading with one or a handful of customers who you rely on for the majority of your turnover.

Being an independent factoring broker we are not tied to any one lender within the market and you will benefit from our years of experience allowing us to present you with the best options available for your business.

Whether you’re starting a new business, already established or if you are looking to improve your current confidential invoice discounting agreement or simply want to improve your cash flow and are unsure which type of invoice finance facility will suit your business, contact us on 01789 761 374 and speak to an advisor today or alternatively fill in our quick quote form for a call back.

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