Whilst we have helped countless construction companies over the years with business finance and are widely recognised as a specialist provider of this, one of our lesser-known lending options is Invoice Finance (IF). Invoice Finance is perfect for construction companies as it supports the challenges you face that impact on cash flow and prevent growth. Things like staged payments, partial payments and long payment terms can slow construction businesses down – until you’ve got Invoice Finance!
Let’s explore the benefits of Invoice Finance for Construction companies…
Keep the job sheet full and flowing
Invoice Finance gives you access to funding while waiting for outstanding invoices to be paid. This means that instead of waiting for one invoice to be paid before moving onto the next job, there’s no delays. You can continue to work on and accept lucrative jobs without the need for outstanding invoices to be paid to provide working capital.
Receive the funds fast for your construction business
Invoice Finance provides a fast way to access business finance. You will often have access to up to 90% of an outstanding invoice value within just 24 hours.
Focus on the revenue-generating areas of the business
For any business – construction or not – cash flow is king. Invoice Finance frees up your existing cashflow to invest in revenue-generating areas of the business to ensure you’re always growing and thriving.
Get paid for the construction work you do today
Staged payments, partial payments and long payment terms can slow workers in construction down. Invoice Finance allows you to be paid for the work you do today, no matter the terms on the invoice. This also means you can pay your contractors on varying payment dates and schedules without disrupting the cash flow.
Boost your reputation
Sometimes construction companies will generate a less-than-ideal reputation for themselves due to slow project progress – which is often due to a lag in cash flow! Invoice Finance keeps your business moving and boosts your businesses reputation as a fast and efficient supplier.
Protect your business
Bad Debt Protection can be added to your Invoice Finance agreements to give you peace of mind and protect you against non-payments of invoices. Should a customer fail to pay, bad debt protection means any loss is absorbed by the finance provider rather than your own company.