Invoice Finance companies will typically not provide finance to companies in the construction industry that raise applications for payment. However, at Funding Solutions we have been finding finance for such companies from the very outset. Clients of ours include scaffolding firms, tiling contractors, roofing contractors and various other construction related businesses. If you are looking for finance against applications for payment then give us a call.

Part of this is because they cannot actually take assignment of an application as it is not a legal document whereas an invoice is.

Invoice factoring companies also become nervous about the variance between the application and the final invoice. They will always consider the risk that the final invoice may be much less than the original application.

Another issue that is considered is the contractual nature of the debt. Typically construction work of any kind is supported by a contract and within that contract will be ‘offset clauses’ and ‘liquidated damages clauses’ that can impact on the value of any outstanding debt. This means that in a failed situation the invoice finance company may not recover the value of the applications or invoices.

At Funding Solutions we aim to understand each individual business that we deal with. Rather than turning our back on the construction industry we have aimed to understand it and along with our knowledge of invoice finance we have aimed to find solutions for businesses with cash flow issues.