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We have several invoice factoring clients who operate in the scaffolding industry. They have always found it difficult to find invoice factoring companies who want to lend to them because of the industry that they operate in. However, as an industry scaffolders require cash flow finance because the house builders are slow to pay yet wages need paying weekly. On top of that funding for tubing is hard to come by and often has to be hired in at high rates or bought for cash which only compound the problem.

So why don’t invoice factoring companies like funding scaffolding businesses? A major issue is that like other construction contractors they submit applications for payment rather than invoices. This can usually be overcome though. Another issue is that applications or invoices are raised in stages.┬áThis means┬áthat in the event of failure the invoice factoring company could be funding a part finished job which will not be completed. They are unlikely to get paid for this and as such would not recover there money. Any contract underpinning the work will almost always be subject to a liquidated damages clause and as such the makes the likelihood of getting paid for a part finished job even less.

So what is the solution if you are looking for scaffolding invoice factoring? Smart factoring quotes work with several lenders who are happy to finance scaffolding forms. They have developed a more in depth understanding of these companies and as such are better equipped to provide the finance.

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