![]() ![]() Loans are not always an option for small and medium-sized construction companies because they don’t meet the minimum criteria (i.e. Apply Now! Construction Factoring is Better Than a Bank Loan That’s why EZ Invoice Factoring designed a specific construction factoring program to provide immediate funding to construction companies who struggle to keep a positive cash flow. Regardless of the amount of contracts you have or how big your project is, there will be a factoring company out there willing to provide you with the credit you require.EZ Invoice Factoring provides factoring for construction companies so they can get a handle on their cash flow.ĮZ Invoice Factoring knows the construction industry, so we understand that slow payments in the construction industry are common, and they make it difficult for a construction company to expand while waiting to be paid for a job. You can add this on to your funding facility providing you with peace of mind. The facility grows with your business so there is no need to regularly renegotiate unlike with a bank overdraft.įor greater peace of mind the majority of factoring companies offer optional bad debt protection by way of “non-recourse factoring” – a form of credit insurance. However, if you would like to maintain control of your ledger, then invoice discounting allows for this without affecting your chances of securing finance against your invoices. ![]() Where previously arranged, the chasing of invoice payments due to you, can be outsourced to your factoring company allowing you to focus on your business. Construction finance enables you to access cash tied up in contractual debt, uncertified stage payments or applications for payment. Once a construction invoice factoring facility is agreed, cash tied up in unpaid billing is usually released within 24 hours so you can stay on top of your operating costs and the costs of buying raw materials for your projects.Funding is available within 24 hours of raising a bill or application for payment. The fact that the facility is linked with your sales allows you to grow your business without any of the usual cash flow worries. It’s not easy to maintain a healthy cashflow and that affects your day-to-day operation as well as your ability to tender for new projects.īoth invoice discounting and invoice factoring provide an immediate cash payment based on of the value of your billing or applications for payment, enabling you to take advantage of preferential early payment discounts with your suppliers, maintain a healthy cash flow and increase your cash flow as your turnover grows. Construction invoice factoring allows you to effectively advance the major part of the payment(s) you are expecting to receive from a job you have completed so you don’t have to wait the full 30-120 days and can get on with funding the next project. This cash flow solution comes in the form of invoice/application factoring which will help you increase the size of the projects you can take on. Just what you need when margins are already tight. Having immediate access to this cash will allow you to pay for staff, materials, equipment hire and other suppliers required so you can bid more competitively on those large upcoming projects. This can stop even the most profitable construction firm from getting on with the next job and growing their business. Alternative Funding is the perfect fit for builders and construction companies looking to grow. Staff needs paying, tool hire, materials and plant all need to be settled month end before companies are placed on stop, Alternative Funding helps overcome this issue by funding your application for payments or invoices.Ĭonstruction Invoice Factoring is even available against uncertified applications for payment, unlocking valuable cash flow to your business rather than facing delays while you wait for applications to be certified. The number of construction companies using invoice finance jumped 27% in 2017. These cash flow finance solutions are often the most effective solution for construction companies and are growing rapidly in popularity. Having the right construction finance and funding in place is critical to maintaining sufficient cash flow to meet the demands of running a successful business.Ĭonstruction Companies can gets cashflow support by using any type of invoice funding product, this can help you put together a flexible and tailored cash flow finance solution using invoice discounting or factoring. Running a construction business presents many challenges and getting paid is probably at the top of the list. Funding for Construction Companies – How does it work?Ĭonstruction Invoice Factoring works by advancing monies against any unpaid and outstanding invoices your construction business may have.
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