Invoice financing – why wait?
The Banker’s Mantra: Turnover is vanity, profit is sanity but cash is reality
Managing the funding and working capital of a business in the construction industry can be a very difficult task. Having funds available when your business needs them can be imperative to the success of a project. Invoice financing can provide a solution.
Invoice financing means releasing cash currently tied up in invoicing when your business needs it, rather than waiting for your clients to pay. It can be used against uncertified applications for payments or staged invoices.
Invoice financing is not just for companies in need – many construction companies frequently sign up to these types of facility to free up extra cash. This ‘cash rich’ position allows them to negotiate better deals from suppliers or take on larger projects.
In an industry which is notorious for unreliable payment terms, invoice financing means timely access to your working capital. This can provide a safety net for your finances so you don’t have to rely on payment from your customers before you can make staff and supplier payments or take on new projects.
Even the most profitable firms can be prevented from getting on with the next job and growing their business as a result of cashflow challenges. Having immediate access to cash will enable you to pay for staff, materials, equipment hire and other suppliers so you can bid competitively on upcoming projects. Essential when margins are tight.
Invoice financing can be a great tool for businesses in the construction industry. Many clients have used it to gain a competitive advantage over rivals when bidding on projects.
Deciding which product and provider are best for your business can be confusing. At Cowgill Holloway we know all the major providers and are experienced in the following areas:
- Understanding your cashflow requirements
- Preparing and analysing a comparison of the available offers
- Assisting with the preparation of information required for your application
- Project managing the whole process so you can stay focussed on your business
- Ongoing monitoring and appraisal of the facility
Our fees are simple and clear and are usually agreed in advance. We do not take commission from the financial institutions, we maintain independence and provide advice on what is best for our clients.
For an initial, no obligation meeting or chat, please contact Stuart Stead on 01204 41 42 43 or email Stuart.Stead@cowgills.co.uk.
Planning for succession can be an area which is often overlooked until it’s too late. Here are some top tips to consider when contemplating exiting your business either through...
There is a lot of understandable concern about the implications for the construction industry whether or not a deal is reached by 11pm on 29 March.
One of the most effective ways of reducing your risk is to bring variety into your investments.