Factoring For Construction
Why Utilise a Factoring Broker for Your Construction Company’s Invoice Finance Needs
Are you seeking efficient cash flow solutions for your construction business? Invoice finance can be a game-changer, but finding the right fit for your industry-specific needs can be daunting. This is where a factoring broker steps in to streamline the process and secure the best solutions tailored to your construction company.
Why Choose a Factoring Broker?
- Industry Expertise: The construction industry operates on unique terms and contractual obligations. Factoring brokers work with factoring companies well-versed in the complexities of construction debt. They understand progress billing, retention, and payment delays inherent in the industry, ensuring a smoother financing process.
- Specialised Connections: Brokers have established relationships with factoring companies that specialise in working with construction firms. These lenders are comfortable with the specific nuances and payment structures prevalent in construction contracts, providing tailored financial solutions.
- Saves Time and Effort: Navigating the array of available invoice finance options can be overwhelming. A factoring broker acts as your guide, simplifying the selection process by presenting you with vetted options that align with your company’s requirements.
- Maximised Benefits: Brokers assess your company’s unique situation to ensure you receive the best possible terms and rates. Their expertise allows you to leverage financial solutions that maximise your cash flow without unnecessary costs.
- Free Service: Utilising a factoring broker doesn’t add any extra expense to your financing. We do not charge you for our services as we are paid a commission from the factoring company for successful paid out business. It is in our interests to place you with a factor who with whom you will feel comfortable.
How We Help
Our factoring brokerage service specialises in assisting construction companies in securing invoice finance facilities. We understand the intricacies of construction debt and work with factoring companies that are comfortable with the industry’s contractual nature.
Get Started
Ready to optimise your cash flow? Contact us today for a consultation and let our experts guide you through the process of securing an invoice finance facility tailored to your construction company’s needs—efficient, tailored financing solutions are just a call away.
FAQ Construction Factoring & Construction Invoice Finance
What is construction factoring?
Construction factoring is a financial service that helps UK contractors and subcontractors get immediate cash by selling unpaid invoices to a factoring company.
How does construction invoice factoring work?
You submit your invoices to a factoring provider, who advances up to 90% of the invoice value upfront. Once your client pays, you receive the remaining balance minus fees.
Who can use construction factoring in the UK?
Construction factoring is suitable for UK main contractors, subcontractors, and specialist trade companies supplying goods or labour on credit terms.
What are the benefits of construction factoring?
Key benefits include improved cash flow, protection against bad debts (if selected), credit control support, and faster access to working capital.
Is construction factoring available for CIS contractors?
Yes, factoring is available for CIS-registered contractors in the UK, providing they invoice for completed work on agreed terms.
How much does construction factoring cost?
Fees vary depending on turnover, invoice volume, and risk — typically between 1% to 5% of invoice value. Get a tailored quote based on your business needs.
How quickly can I get funds from construction factoring?
Most factoring providers release funds within 24 to 48 hours of invoice approval, giving you fast access to working capital.