- Ground works
- Demolition Contractors
- Property Maintenance
In most trading situations one company will deliver goods or services to another company and expect to be paid within agreed terms. Factoring companies find these situations easy to deal with and are happy to fund the majority of situations presented to them.
The construction sector presents a totally different situation. In many cases the supplier will present what is known as an application for payment to the customer. This is not an invoice but is effectively a request for payment based on work carried out on a particular project. Many projects can take months to complete and applications are submitted at different stages of the project.
Applications can be disputed and reduced which of course can cause the supplier real problems if they are expecting a certain payment and this ends up being reduced and sometimes delayed. Companies in this sector will often have weekly payrolls to meet and a regular and consistent cash flow is essential.
In many cases small companies known as sub contractors are working for large companies who can often make like difficult and there have been numerous cases where a sub contractor has failed due to slow and delayed payments from the main contractor. Many contract have penalty clauses inserted which can be triggered by delays in finishing a project and there also monies withheld which are known as retentions. These retentions are released normally 12 months later when the customer or main contractor is satisfied that that there are no faults with the work that was carried out.
It is clear from the above that there are many issues that businesses do not normally face in traditional trading situations. Such businesses do therefore need specialist help in financing their businesses.
Findmeafactor has relationships with specialist construction funders who have extensive knowledge of the sector and whose support is essential in maintaining cash flow to support their business. The factoring company will assist their client in ensuring that their paperwork meets industry requirements and working with them to ensure their position is not damaged by the conduct of a large customer.