When you work in construction finance can be tricky – the following cash flow challenges are likely a reality for your company on a daily basis:
- Finding money to pay wages and suppliers before the main contractor settles your payment application
- Persuading the bank to extend your overdraft facility or sourcing competitive invoice finance solutions
- Keeping costs down as the price of raw materials increases
- Negotiating payment with customers who think it’s fine to settle invoices on their terms, not yours
These factors, amongst others, cause regular cash flow headaches for any company working in the sector.
Our construction finance product
Nucleus construction finance is a dedicated cash flow funding product designed specifically for SMEs / sub-contractors working in the cash-strapped construction industry.
We work directly in partnership with a team of experienced quantity surveyors who understand the intricacies of construction contracts and the challenges that contractors and sub-contractors face. Using a fixed rather than a variable fee model, we have removed the uncertainty associated with the costs of ‘traditional’ lending products, which is their principal downfall.
Our construction product is an innovative funding solution that is both practical and sustainable. It provides pre-payments against applications, stage payments and milestones for sub-contractors in construction or other industries, where contracts with their customers have been a barrier to finance from traditional lenders.
The product is based on a traditional factoring approach but benefits from our fixed fee model to ensure transparency on costs. Cash is advanced at an agreed percentage of the outstanding invoice / application value, taking into account the longer contract terms typical within the construction sector. It is typically targeted at businesses requiring funding of up to £2 million (cash out).
How you’ll benefit
With our bespoke construction finance product we can afford our customers the following benefits:
- A cheaper fixed fee facility compared to other providers
- Pre payments against applications to generate adequate working capital
- A confidential facility to prevent the need for disclosure to debtors
This will enable you to:
- Boost turnover and increase profitability with additional working capital
- Meet payroll and all supplier payments on time
- Take the pressure off the everyday struggle of surviving with no working capital facility
- Avoid raising equity capital and diluting existing shareholder ownership
Why Nucleus Commercial Finance?
We’re experts at structuring funding. When we provide you with construction finance, it’s testament to our belief in your business. On top of that we take pride in our transparency and are hands off when it comes to loan management. We know you have a business to run and we’ll provide you with the finance you need to grow it profitably.
Whatever finance you need for your business, whether overdraft, cash flow finance, asset funding, secured business loans or invoice finance, our expert analysts will discuss your options with you, make everything as clear as possible, and work out a package to suit your needs.
To find out more, contact one of our construction finance specialists or Quantity Surveyors today.