Construction Factoring Finance - Factoring Brokers are here to help you

Construction Industry Factoring Finance

If you’re a Building Contractor or Sub Contractor, you’ve probably been through the pain of speaking to several factoring companies who advertise Construction Industry Factoring, but found the reality is unfortunately as expected. Several Factoring Companies advertise Construction Factoring but few really have a besoke product.

The reason for this is that some factoring lenders try to take a standard factoring facility and ‘make’ the construction business fit into the facility. Of course, Construction contractors and sub-contractors are normally bound by very detailed contracts detailing amongst other things, stage payments etc.

However, we have a small number of lenders on our panel with specialist knowledge of the construction sector and they view a funding application from a building company very differently to most factoring companies.

The specialist lenders often have a base criteria of requiring the applicant to have been trading for 12 months, preferably with a set of accounts and for a director / owner to be a homeowner. In addition the lender would normally require sight of any major contracts to check for any potential problems and to seek workarounds if appropriate.

Providing us with as much information upfront is paramount in getting a quick turnaround from any lenders.

Factoring is the raising of funds against your debtor book combined with sales ledger management.

Invoice discounting is the raising of funds against your debtor book, whilst you maintain control of the sales ledger management. Invoice discounting tends to be more suitable for established businesses with a healthy balance sheet.