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Construction factoring is a topic that we have covered several times on this forum.

It is a sector that struggles to find suitable forms of working capital finance as banks are reluctant to offer overdraft facilities and invoice finance companies are uncomfortable with the risks associated with the construction industry.

To summarise these risks relate to the stage payments, the fact that applications for payment can differ to the actual certified amount and the ability to offset any monies owed by way of liquidated damages clauses. These can all impact on a factoring company collecting what is owed in a failed situation and as such the factoring companies are cautious.

Construction-Factoring have now launched a dedicated site for contractors and sub contractors that can help them source suitable solutions. These can range from whole turnover confidential invoice finance facilities through to more flexible facilities where a single invoice, a batch of invoices or a selected debtor can be financed.

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