We reviewed the questions we get asked most often and compiled this Frequently Asked Questions list. If you can't find an answer to your question, why not ask one of our team.
Construction Finance (also known as Construction Factoring) provides your business with instant funding against uncertified and certified Applications for Payment and invoices raised at completion. We help you to meet your payment obligations throughout the various stages of a contract so you can and take on more work knowing you have reliable funding in place.
Construction Finance is ideal for contractors and subcontractors who work under framework agreements or Purchase Orders that can result in late or partial payments for work completed. It gives you certainty over the funds you have available and releases cash while you are waiting for your applications to be paid. It can also help businesses who need to manage seasonal ﬂuctuations or who want to take on new projects without taking on extra debt.
Construction Finance helps you to improve and control your cashflow, so you can run your business smoothly and efficiently. By advancing cash against the value of your invoices, you can pay wages, negotiate better prices when you buy materials and settle your debts while you are waiting for payment.
As an alternative to traditional model of business finance such as loans and their inflexible payments, Construction Finance is as flexible as your business, especially when it grows. It is also a smarter way to finance your business than using personal savings, credit cards or bank overdrafts.
Every business is different. We'll work with you to make sure the funding you get is exactly what your business needs. This means that the length of time to have everything in place can vary depending on how complex your business situation is.
We work flexibly from the point of meeting you to understand your needs. Your facility can be in place in a matter of days however, this also depends on the speed in which we can access the information we need.
Like any financial arrangement there is a bit of work required at the beginning but after that, any facility arranged will grow as your business grows. After your initial contact there will be a confidential discussion with one of our Construction Finance specialists who will get to know your business and arrange a face-to-face meeting with you. Once we understand the requirements of your business, we will provide an indicative offer to you. Following a new business review and consideration by our credit committee, we will then be able to make a credit offer to you. If you choose to work with us we’ll arrange an on-boarding meeting for you after which you can begin sending invoices to us and we can start releasing funds for you to use.
If your client doesn’t pay within the agreed period, also known as the recourse period, usually 90 days, funding will be removed unless protected by Bad Debt Protection cover. You have the option to protect against customer insolvency with Bad Debt Protection.
As a Construction Finance client of Bibby Financial Services, you will have access to the industry specialists, The Vinden Partnership who can review those contracts financed by Bibby Financial Services. You can also benefit from access to additional advisory services from The Vinden Partnership, which includes arbitration at discounted rates.
Every agreement and facility is different. The cost to your business will depend on your needs and the services you choose to use. If you would like to discuss how Construction Finance would work for your business, request a call-back and one of our specialist team will be in touch.
Funding and support for subcontractors in the UK construction sector since 2004
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