Construction Finance - What is it and how it can help your business?

Construction Finance

There are selected lenders that will consider construction finance; a hybrid of invoice finance will mean lender’s will provide an immediate injection of cash against the value of your outstanding invoices and applications for payment providing an ongoing supply of funds during the life of your customer contract or order. As you raise an invoice or application for payment, lenders will release up to 70% of the value of that invoice/application within 48 hours. The remaining 30% is paid to you, less the fees, once the lender receives payment from your customer.

This means your construction business has access to an ongoing supply of cash linked to your sales. So as your business grows so does the amount of funding available to you and therefore gives you continued trading flexibility or even allows your business to grow, should you need to purchase stock, equipment for future projects.

Enquire about Construction Finance – We will not request full details until we have contacted you with the best UK quote for Construction Finance, so please give us a name and contact telephone number and we will have one of our Construction Finance Specialists contact you in confidence.

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Case Study

We are a small family run building firm; carry out local residential work, along with projects with local councils. Our overdraft was capped in line with our local council work & causing restraints on cash flow. CBF advised that there would be limited options, due to the nature of our mixed work, yet was able to review the council contracts & advise that a lender would be able to fund the contracts giving more working capital than the bank overdraft. CBF did explain that the cost of borrowing would be higher, yet allow us to take on more contracts & cover the finance costs.