This is a solution for contractors and subcontractors to release capital locked in applications for payment or staged invoices, where clients typically pay on 30,60 or 90-day payment terms.
The lender advances a percentage of the invoice value within 24 hours of the invoice being raised. Once the lender receives payment from the client, they advance the remaining percentage of the invoice, net of interest and fees.
Contractors and subcontractors have access for a minimum of 12 months with Construction Invoice Finance, with the lender reviewing performance throughout the term.
The finance provider will typically require a debenture over the business and a Personal Guarantee limited to a percentage of the credit limit.
