Construction Finance Options
Bespoke, specialist solutions tailored for your Construction Business
Construction Finance with The Business Board offers funding solutions for construction companies including sub contractors who provide services under a contract, framework agreement or purchase order.
We understand the intricacies of the construction sector, in particular the needs of contractors and subcontractors with customers on long payment terms making partial payments for work completed.
Construction Finance allows you to enhance and control your cashflow, so you can run your business as efficiently as possible. By advancing cash against the value of your invoices, you can pay staff wages, negotiate better prices when buying stock/materials and settle debts whilst awaiting payment.
"Funding at the point an Application for Payment is submitted"
With The Business Board’s construction finance options, funding can be accessed at the point an Application for Payment is submitted. This gives you clarity over the funds you have available, and in place, for the duration of any contract. With a healthy cash-flow and a continuing source of working capital you can tender for, win and complete contracts without having the implications of restrictive overdrafts or loan repayments. The finance facility is as flexible as your business needs it to be, and it grows with you.
In summary, construction finance provides funding by way of advancing cash against the value of invoices raised on the part-completion for staged contracts, or completion of work carried out.
Key Features of Construction Finance
The COVID 19 Pandemic and its continuing impact on the economy is obviously an immediate concern however it’s unlikely that the full ramifications of reduced cash flow through supply chains will fully materialise until late 2020. As construction businesses restart work on sites, under the existing contract terms many won’t receive cash for around 50–60 days. Simultaneously, suppliers will be increasing stock and material purchases, as well as labour, as they seek to drive up output.
Given how services in the construction sector are invoiced, there is a significant further cash-flow issue for contractors and subcontractors which is likely to become apparent from Q3 of this year onwards. This, coupled with clients delaying or withholding payments and the ending of the job retention scheme currently put in place by the government, will be a substantial threat to many businesses within the sector. It’s imperative you have a well planned finance strategy in place that offers you security and the liquidity you need to navigate your business through these challenging times.
If you are interested in finding out more about Construction Finance Solutions, email us at: email@example.com or call our office on 0118 338 1818.