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.
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:-
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.