Over the years invoice financiers have by and large steered clear of the construction industry. The concern has been potential erosions to the debt created including the possibility of a client failing to fulfil any overall contract, rendering staged billings uncollectable.
This has led to a problem for construction businesses and those deemed to have similar operational issues such as shopfitting.
it is possible to find funders with some invoice financiers prepared to look at staged billings and applications for payments.
In their conventional dealings invoice financiers will finance up to 90% of gross invoice values; in construction it’s more likely to be 40% but this can still provide a much needed cash boost.
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