Construction Factoring
Annual Turnover –
*6 Months + Trading
*All credit profiles considered
*up to 75% invoice Advance
What is Construction Factoring?
Construction factoring is a specialised financial service that allows construction companies to convert their outstanding invoices and applications into immediate cash. This service enhances cash flow by providing quick access to funds tied up in unpaid invoices, enabling construction businesses to meet their financial obligations and invest in new projects without waiting for client payments.
*All credit profiles considered
How Does Construction Factoring Work?
- You complete a phase of work, issue an invoice / application to your client, and submit it to a factoring provider.
- The factoring provider reviews the invoice and your client’s creditworthiness.
- Upon approval, the factoring provider advances you a percentage of the invoice value, typically between 50-75%, within 24-48 hours.
- The factoring provider takes over the collection process, contacting your client directly for payment.
- Once the client pays the invoice in full, the factoring provider releases the remaining balance to you, less their pre agreed fee.
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Benefits of Construction Factoring
- Receive immediate funds to cover expenses, purchase materials, and pay subcontractors.
- Save time and resources by letting the factoring provider handle the collection process.
- Easy access – funding is available even if you have bad credit.
- Credit Protection: Customer credit checking and optional bad debt protection reduces the risk of bad debts.
Is this right for your business?
With a wide and varied range of funding solutions and lenders, it can be difficult to understand which is the best option for your business. At Aim Financial Solutions, we will help you to understand which funding options are the best solution for your business and we will help you to secure the most competitive terms with the best lender for your circumstances.