Construction Finance

Construction Finance facilities provide funding against Applications for Payment for the first tier subcontractor sector. Specialist providers offer funding against Uncertified Applications for Payment on a fully confidential basis.

Benefits include:-

• Receiving cash payments at the point of raising an Application for Payment (rather than waiting for it to be certified);
• Eases pressure on cashflow, allowing supplier and wage payments to be made in a timely manner;
• Non-disclosure of the funder to your customer;
• Provision of full, confidential credit control and sales ledger management services enabling you to maintain customer relationships;
• Added-value service in respect of contract management.

Due to the specialist nature of this service, prepayments against invoices and Applications can vary, typically between 20% and 70% depending on sector and the nature of the contractual work.

Typical trades supported are:-

• Decorating
• Electrical contracting
• Flooring
• Groundworks
• Heating
• Industrial cleaning
• Plastering / Dry lining
• Plumbing
• Property maintenance
• Roofing
• Scaffolding

As this type of facility is considered to involve a higher risk to funnders than a traditional factoring faciliiy, most funders would place more emphasis on business owners when undertaking their due diligence. In most cases funders will only commit if director/shareholders are houseowners.