Construction invoice finance is a specialist short-term funding option available to those in the construction industry. One unfortunate aspect of working in construction is that waiting for payment is par for the course. Construction invoice finance is a way of releasing the money tied up in your outstanding billing, freeing up vital working capital so you can get on with the job in hand. Construction finance is available to anyone working in the industry, including contractors.
With companies typically needing to buy supplies for a new project and also ensure their staff and subcontractors are paid before the first stage payment is received, finances can easily run out and put a stop to the project before it even begins.
Construction invoice finance is a way of navigating this issue by allowing you to borrow against the money you are owed. This can allow you to access money when you need it most, and ensure you are able to kick-start a job without suffering from finance-related delays.
Specialist construction invoice finance is provided by lenders who understand the nature of the trade. They will look at your payment contract and loan you a percentage of the amount owed to you. There will be a fee involved at this point. This allows you to commence work on the project and get the job underway. Your customer will pay their invoice to the lender, at which point the remaining percentage of the payment will be forwarded to you.