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• 25 Aug

  Construction Factoring Information

  Slow-paying customers are common within the construction sector. Their unpaid accounts payable can tie up a lot of your working capital.

  If you need more funding to take on new projects, or you have been turned down for construction finance by a bank or you have contracts that you can't fulfil, construction factoring could be the answer for you - by unlocking your business cash flow.

  GET A PRICE QUOTE NOW

  Construction Factoring

  The product delivers three core elements of service by factoring construction invoices you can receive:

  • Prepayments against unpaid invoices or applications for payment - instant cash.
  • Credit control service and sales ledger management.
  • Protection against bad debts (this may be optional).

  The prepayments free up cash from your outstanding accounts receivable (these are your invoices or applications for payment raised to your customers), you can stop waiting to get paid, you get a proportion of the value upfront, and the balance is passed on (less the factoring fee) once the customer pays. Both invoices and payment applications can be financed.

  Unlimited Funding When Factoring Construction Sales

  There is no limit to the level of funding that can be released in this way, it grows as your turnover grows with an increase in construction sales. The more sales you make, the more receivables you have, the more funding is generated - the funding is unlimited.

  Contractual debts and stage payments (or progress billing) can all be funded.

  Selective Options Or Whole Turnover

  If you don't like the idea of funding all your invoices (whole turnover), there are selective factoring (also called Spot Factoring) services that allow you to pick and choose the transactions that you submit.

  Previously Declined By A Bank?

  Even if you have been declined or turned down by a bank for construction finance, you are still likely to be able to qualify for construction factoring. There is no requirement for collateral to secure the facility, beyond the receivables that you are being funded against.

  Key Benefits Of Factoring Construction Transactions

  The product can include credit control and ledger management which frees up your time to focus on running your business, instead of chasing people for payments.

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  Additional Help

  To discuss your funding requirements and to understand the costs, please call Sean on 03330 113622.

  Read case studies and more about Construction Factoring. 

  By Glenn Blackman