What is Construction Finance?
Designed for the Construction Industry
Construction Finance is a type of Working Capital Finance tailored to the needs of businesses within the Construction industry. It is a great way to release the cash locked in lengthy construction contracts prior to a payment certificate being issued.
This means you can still offer your customers the same payment terms as before, but you get to access some of the contract’s cash value straight away – we deposit the funds into your account within 24 hours of you raising a request.
Why use Construction Finance?
New contracts bring new expense – from having to buy supplies upfront to paying employees weeks, or even months, before your first stage payment. Construction Finance releases the cash that’s owed to you, typically within a week. Even before completion certificates have been issued. It takes the pressure off late payment concerns, even during lengthy contracts. And it gives you the financial security to secure bigger contracts without worrying about your cashflow.
How to use Construction Finance?
When you apply for a Construction Finance facility with us, we’ll agree a funding limit that you can use to unlock the cash tied in your applications for payment. When your clients repay, the funds refill your funding limit.
Because we believe in helping businesses meet their ambitions, we’ll regularly review your facility so that it grows with your business.
Raising applications for payment
When raising new applications for payment, you’ll need to add them to our online platform E3 to let us know we need to deposit the associated funds into your bank account.
Built with business owners in mind, our 5-star rated dedicated online portal lets you quickly manage your account whenever you need to from wherever you are, on a computer or a mobile device.
Your customers still benefit from your usual credit terms and not much will change for them: your invoices will reflect the new bank account details they need to pay into and they may get to speak to some members of our team based on the type of service you’ve chosen.
What are the main benefits of Construction Finance?
Construction Finance is perfect for any construction-related companies paid on a monthly or contractual basis who are looking to maximize their working capital. The main benefits are:
- Funding in your account within 24 hours of raising uncertified applications for payment
- It costs less than an overdraft facility
- Confidential facility – your customers don’t need to know you’re using the funding
- It can help you pay your bills and wages
- It can help you grow your business by removing pressure points on your cashflow
How much does Construction Finance cost?
Construction Finance can be a very cost-effective way to protect your cashflow. The fees you pay will depend on various factors such as the amount advanced and duration. But we’re always competitively priced and always completely transparent. There are no hidden fees or charges.