What is Construction Finance?
Construction finance relates to financial products that are specifically tailored to businesses operating in the construction industry. This can include bespoke invoice finance facilities, asset finance or loans to name a few. Given the nature and quirks of the construction industry, if your business operates in this marketplace and is looking for funding, it is important that your chosen funding partner understands your business inside and out as well as the specific industry sector in which you operate. There are many specialist construction finance providers and over the years, Harrisons’ team has developed relationships with key players who are best placed to support businesses operating in the construction sector.
How does Construction Finance work?
For businesses operating in the construction sector, it is more than likely that applications for payment are submitted prior to payment being made by the main contractor. Often there is a considerable period between the application for payment being submitted and the main contractor paying the amount due. During this period various costs and expenses will need to be paid such as wages, sub-contractors and materials / suppliers. A construction invoice finance facility would assist to bridge this gap by providing funds upon the submission of uncertified applications for payment or sales invoices.
As with other invoice finance facilities, so long as the funder is happy with the information and documents provided, funding at the agreed percentage will be made available usually within 24 hours. Given the contractual nature and the various complexities in the invoicing / payment process (compared to other industries / sectors), the amount typically advanced by the funder would be up to 70%.
Subject to circumstances a construction invoice finance facility could be confidential, meaning that customers would not need to be made aware of the funding facility in place.
For more information on the individual Construction Finance products or indeed any of our other products and services, complete the Get A Quote, Contact Form or email firstname.lastname@example.org. Alternatively simply telephone our national rate number 0845 601 5343 or contact your local Harrisons office, details of which can be found within the Contact Us section.