This can stop even the most profitable construction firm from getting on with the next job and growing their business. Having immediate access to this cash will allow you to pay for staff, materials, equipment hire and other suppliers required so you can bid more competitively on those large upcoming projects. Just what you need when margins are already tight.
This cash flow solution comes in the form of invoice/application factoring which will help you increase the size of the projects you can take on. Construction invoice factoring allows you to effectively advance the major part of the payment(s) you are expecting to receive from a job you have completed so you don’t have to wait the full 30-120 days and can get on with funding the next project.
It’s not easy to maintain a healthy cashflow and that affects your day-to-day operation as well as your ability to tender for new projects.
Both invoice discounting and invoice factoring provide an immediate cash payment based on of the value of your billing or applications for payment, enabling you to take advantage of preferential early payment discounts with your suppliers, maintain a healthy cash flow and increase your cash flow as your turnover grows.
The fact that the facility is linked with your sales allows you to grow your business without any of the usual cash flow worries. Funding is available within 24 hours of raising a bill or application for payment.