Construction Finance Key Features and Benefits
Faster access to cash
Accessing cash from your unpaid invoices or applications is made swift with invoice finance. Instead of waiting for customer payments, you can typically receive up to 70% within 24 hours, enabling quick access to your tied-up funds.
Debtors act as collateral
This can provide directors with peace of mind, as they can obtain the financing they need to support their business growth, without pledging their personal assets as collateral. The lender places a lien on the company’s outstanding debts.
Borrowing flexibility
Construction invoice finance is a flexible financing solution that can be tailored to meet the specific needs of your business. The more your debtor book grows, the more cash you can generate.
Supplier payments
Construction finance solutions can facilitate prompt payments to suppliers and subcontractors. This can help you build strong relationships with your suppliers, maintain a reliable supply chain, and negotiate favourable terms.
Optional bad debt insurance
Adding optional bdp protects cash flow, mitigates credit risk, provides access to credit checks and debt recovery services, and safeguards your cash flow from the impact of bad debts. You can customise and choose which debtors to cover.
Improved liquidity
Construction invoice finance can improve business liquidity by converting unpaid works into cash which can be invested to make your business more competitive.
Eligibility
Construction Invoice Finance is for businesses looking to boost cash flow by borrowing against their outstanding sales invoices or applications for payment.
You must be a contractor or sub-contractor.
You must Work under a contract, framework agreement or purchase order.
You must have active contracts or agreements with clients or main contractors in the UK construction industry.
Your business should generate invoices for completed work or services provided in accordance with the terms of your contracts.
To be eligible for financing, it is important to have a reliable purchase order system and quality sign-off process that ensures clarity and accountability.
Frequently Asked Questions
Is Construction Finance right for my business?
If your business would benefit from an ongoing boost to its cashflow and you turn over more than £50,000 per annum, then Invoice Factoring is a flexible solution to free up time spent chasing customer payments and running credit control.
How do I manage my Construction Finance facility?
By assigning your invoices to us, you can access up to 90% of the invoice value typically within 24 hours. Your customers will pay into a central account and cash will be allocated on your behalf, at which point you will receive the remaining value minus our fees and charges.
How does Construction Finance affect my credit score?
It doesn’t – although we review your personal credit files as part of our checks, it won’t affect your credit score or your ability to get personal finance.
Will my customers know I'm using Construction Finance?
Yes – a notice of assignment is added to each invoice and your customers make payments directly to us.