Construction factoring can be hard to come by but there are a number of options available. In the first instance you may need to see if all lenders will consider you as part of the construction industry. Some may feel that you are on the fringe and a more traditional type of facility may be available.
However, if your business is predominantly underpinned by contracts with main contractors and you raise applications for payment for work that is completed in stages then there is a good chance that you will need a construction factoring solution.
Your options will include:
Whole turnover agreements: you will notify each and every application or invoice. The agreement can be confidential so your customers are unaware of any lenders involvement. Prepayment levels are typically between 40 and 60%
Selective Debtors – you can choose to factor only the invoices from certain debtors. This allows you to reduce fees that would normally be paid factoring debtors you do not want to.
Selective invoices – you can chose to factor a single invoice or a batch of invoices as a one off exercise or on an ad hoc basis.
If you wish to explore what options are available for your construction business contact the Smart Factoring Quotes team today.