INVOICE FACTORING CONSTRUCTION FREE

Invoice factoring for construction companies is when a business sells its sales ledger to a third-party company. You no longer have to wait up to 120 days to receive settlement for your services, and you remain in charge of your own credit control processes, meaning that you continue to chase late payments and therefore your customers are not made aware of any third party involvement. If you prefer to keep the financial arrangement confidential from your customers then discounting may be the right product for you. The main difference between this method and invoice factoring is that your customer is not aware that you have taken on cashflow finance. The benefit of invoice discounting is you maintain responsibility for your sales ledger as well as any outstanding amounts chased and invoice processing. With an invoice discounting company, when sending out invoices to customers a proportion of the total amount becomes available from the lender, which provides your business with a source of working capital throughout the month while you wait for your client to pay their bill. Invoice discounting companies enable businesses to leverage the value of their sales ledger. Invoice discounting for construction companies is a confidential facility when a companyвЂ™s unpaid invoices are used as collateral for a loan. To help you work out which type of construction finance will suit your business, here is a brief guide to the three mainВ funding solution options: Invoice discounting The needs of construction businesses tend to vary according to growth stage and their specialist industry sector.

Types of invoice financing for the construction industry

Optional Bad Debt Protection (BDP) to protect against non-payments.

Fully managed credit control or opt for confidentially keeping it in house.

Works for both contractors and subcontractors within the construction sector.

Receive up to 75% of the invoice amount in 24 hours.

Cash can be released against certified and uncertified payment applications, staged invoices or sales invoices.

It is worth noting that construction invoice finance is notВ authorised and regulated by the financialВ conduct authority. This type of funding product for the construction industry helps to provide a working capital solution to help pay suppliers, contractors and employees.

Any industry needs working capital as it is the blood of a business, without it the business will fail. If construction businesses are looking to fulfil contracts often find that they donвЂ™t have sufficient working capital to pay things like wage bills, plant suppliers, merchants or simply buy the materials to keep the job running.Д¬onstruction invoice Finance can help your business by providingВ specialist finance which allows upfront funding against certified and uncertified applications for payments and invoices for work completed.В This gives businesses peace of mind that they have funding in place at every stage of a contract.Д¬onstruction finance works well for main contractors and sub-contractors in the construction and building sectors. Why construction businesses should consider invoice finance Many businesses are turning to this option to take back control of their finances, allowing them the breathing space needed to move forward.

INVOICE FACTORING CONSTRUCTION FREE

This highly flexible form of borrowing can be used to free up funds from your debtor book, relieving the pressure placed on your cash flow. This business finance solution will advance funds of up to 75% regardless if your business works on a contractual debt, uncertified stage payments, applications for payment or simply an invoice basis. What is construction finance?Д¬onstruction finance is a type of asset finance based lending that is designed to work for the construction industry regardless if you are a main contractor or sub contractor. This will allow you to access the working capital to pay for your supplies or simply take on new work. Businesses are faced with staged payments, partial payments and long payment terms, this can have a negative effect on cash flow.Д¬onstruction Finance will allow you to access cash you have tied up within 24 hours of submitting an invoice or raising an application for payment. The construction industry face unique challenges that impact cashflow and prevent growth.

Invoice factoring construction