Unlock Cash Flow in Construction: Invoice Finance for Uncertified Applications for Payment
In the construction industry, managing cash flow can be particularly challenging due to the way payments are structured.
The system of ‘stage payments’ or ‘applications for payment’ can mean that there are often substantial delays between completing work and getting paid for it.
Fortunately, there’s a finance solution specifically designed to tackle this issue: Invoice finance for uncertified applications for payment.
Let’s explore this in more detail.
What Are Uncertified Applications for Payment?
In the construction sector, work is often paid for in stages, represented by ‘applications for payment’.
These are submitted monthly and represent the work completed to date.
However, there can be a significant delay before these applications are certified and paid, creating a cash flow challenge for many construction businesses.
How Can Invoice Finance Help?
Invoice finance allows construction companies to raise finance against these uncertified applications for payment.
Instead of waiting for the application to be certified and then paid, a process that can often be protracted, a construction business can receive a percentage of the value almost immediately, significantly improving cash flow.
Why Use Invoice Finance for Construction Businesses?
This form of invoice financing is particularly beneficial for construction companies because it’s designed to meet their specific needs.
Invoice finance providers who specialise in this area understand the complexities and risks associated with the construction industry, as well as the unique nature of applications for payment.
Unlike traditional invoices, applications for payment aren’t legally recognised documents, which can make securing finance against them more challenging.
However, with the right invoice finance provider, you can unlock the value tied up in these applications, making your cash flow much more manageable.
Finding the Right Invoice Finance Provider
When choosing an invoice finance provider, it’s crucial to work with a team who understands the specific needs and challenges of the construction sector.
The Funding Store specialises in sourcing suitable invoice finance solutions for businesses in various sectors, including construction.
We can connect you with the right provider for your needs, helping you improve your cash flow and manage your finances more effectively.
In the challenging and often unpredictable world of construction, having access to reliable cash flow can make all the difference.
To find out more about how invoice finance for uncertified applications for payment can benefit your construction business, contact us today.
Funding from Uncertified Applications for Payment
At The Funding Store, we’re delighted to announce that we are working with a niche lender specialising in Invoice Finance for uncertified applications.
This provider understands the unique challenges of the construction industry and offers a facility tailored to meet these needs.
Here’s what they offer:
- They require a minimum of one year trading history.
- Your business should have a minimum turnover of over £600k.
- They offer funding quickly, dramatically improving your cash flow.
- You can manage your account via an online portal 24/7, giving you flexibility and control.
- Set-up and service fees do apply.
- They offer fully confidential facilities managed by a dedicated construction team, backed by a specialist Quantity Surveying partner.
- As for security, they require a personal guarantee, assignment of outstanding billing, and Work In Progress (WIP) supported by a debenture.
This offering represents a real game-changer for construction businesses dealing with the cash flow challenges presented by uncertified applications for payment.
It brings together the specialist knowledge required to navigate this complex area with a practical, business-focused approach to finance. We’re proud to connect our clients with this unique service.