- Project plans
- Project activities
- Legislation and standards
- Industry context
- Specialist wikis
Last edited 01 Mar 2021
One of the key issues facing contractors and sub-contractors in the construction industry has always been that of late payment. Invoice finance is a product (or group of products) aimed at improving cash-flow for businesses who issue 30/60/90-day invoices to other businesses.
How it works:
- Once a facility is in place, the standard invoice is sent to the customer as usual.
- A copy of the invoice is sent to the finance provider who will pay a pre-arranged percentage of the invoice amount within 24 hours. The amount paid is usually between 80% and 100% of the invoice total.
- The invoice finance company will chase the customer for payment and when paid, the balance (less any fees) is sent on to the seller.
The standard process is 'factoring' - where the customer is made aware that the finance company is chasing for payment. In confidential invoice discounting, the customer is unaware that the finance company is chasing for payment.
 Related articles on Designing Buildings Wiki
- Buyer-funded development.
- Cash flow.
- Construction loan.
- Construction project funding.
- Cost plans.
- Discounted cash flow.
- Equity and loan capital.
- Equity in property.
- Funding options.
- Funding prospectus.
- Mezzanine finance.
- Project-based funding.
- Real Estate Investment Trusts.
- Reverse premium.
Featured articles and news
Will you need it ? after June 15 and the new Part O ?
Create and account and write the first of many articles.
CIAT commentary after the first meeting.
Who is to blame?
Research recommends focussing on portfolio success rather than project success.
The revised standard for mapping underground utilities.
Cross-industry steering group seeks support in delivery.
Help us update process pieces from your field.
APM report explores existing practice.
COVID-19 and the importance of mental wellbeing.
As Professionally Qualified Person (PQP).
In order of relevance and with industry responses.
Raising awareness of the impacts of loneliness.
The list is growing, and in more ways than one.
We shouldn’t build new, If we can’t maintain what's built.
Timber Accelerator Hub phase 1 report