Factoring for construction industry subcontractors has long been thought of as impossible due partly to the contractual nature of “the product” and partly to the fact that JCT contracts don’t give the factoring companies the title to the debts that they believe they need as security and they tend to insist on invoices when the service has been completed and not applications for payment partway through a contract.
Some factoring companies will offer factoring facilities begrudgingly to some sub contractors in the construction industry but only in a half hearted manner as long as they invoice when the job is complete. This works well for some but the problems start to arise when the company is offered work on a contract basis and the factoring company refuses to fund it.
Thankfully there are one or two companies that not only offer both factoring and invoice discounting facilities to construction industry subcontractors but actually welcome business from companies in that sector.
Additionally there is one factoring company who will offer single invoice factoring to companies in the construction industry too and they are also happy to fund applications for payment as well as invoices.
Factoring Solutions is the UK’s leading independent specialist factoring broker with industry experience going back several decades. We deal with relatively few of the large number of players in the factoring arena as most do not live up to the high standards or transparency that we insist on.
There are no charges for our services so for an informal chat without any obligation why not contact us to discuss your specific requirements
Factoring Solutions
5 Torridge, Hockley, Tamworth, Staffordshire B77 5QL
Tel: 01827 707680