Create an Invoice for Construction Work for Businesses Effortlessly

Invoice for construction work for businesses

Hello, in this video we're going to look at how  Invoice Finance can be used in the Construction   Industry to improve your cash flow and to  help you grow your business. As you may know,   most invoice finance companies don't offer funding  to businesses working in Construction. Many don't   have the in-house expertise to understand the  complex construction contracts and they prefer   to focus on more straightforward industries.  However, there's a selection of great funders   with specialist teams that fully understand the  construction industry and can fund against your   Certified and Uncertified Applications for  Payment. There are two options available,   depending on the size of your company.  First, let's look at Single Invoice Finance.   If you're a construction start-up or still in  the early stages of building your business,   or if you just have short-term cash flow issues,  you can use a Single Invoice Finance provider   that will fund 100% of your invoice. They will  look at your clients financial history rather   than your own and will offer funding  once each phase of work is completed.   The fees for Single Invoice Finance are  higher than a more regular arrangement   and would start at around 5%, plus another  1% percent for Bad Debt Protection. This   protection is Non-Recourse so it protects  you against Non-Payment from your client,   waiving up to 90% of the money that's already been  advanced. For a Construction Start-Up, this is a   really great option to have in your back pocket.  The next option is Construction Invoice Finance.   More established firms would require  a full Invoice Finance Facility   which would vastly reduce the cost of funding. You  may be winning contracts with long payment terms   but still have to pay for materials, staff  costs and other overheads before you get paid.   This can put a serious strain on your working  capital. The good news is that if you are a   Construction business or Sub-Contractor working  on residential or non-residential projects,   you can still have the cash advanced  against both Certified and Uncertified   Applications for Payment. This gives you access to  the funds at the point you submit an application,   rather than waiting for certification. The fees  will depend on the amount of funding you require,   this can range between 1% to 4% and the higher  the turnover, the lower the fees would be.   If you are considering Invoice Finance for your  Construction business, we have access to all the   specialist schemes available with all the major  providers and can advise you who would probably   be the best fit for you. We're always fully up  to date with any special offers or trials that   become available. We hope you found this  useful, please check out our other videos   and if you would like a quote for any type of  Invoice Finance go to .wisefactoring.co.uk   and get a quote in 30 seconds, without any  funders contacting you. Thank you for watching!