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title: ConstructionFinance
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- [Invoice Finance](https://www.optimisedfactoring.co.uk/#InvoiceFinance) 
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Construction Finance

## What is Invoice Factoring?

Invoice factoring (or invoice finance) lets you sell unpaid invoices to a third-party "factor" at a discount, getting most of the value upfront (usually 60-80%), while they collect from your client. You receive the balance minus a fee once paid. It's not a loan, so no debt accrues; it's accelerating your receivables.

In construction, it's useful for handling stage payments, retentions (held-back funds until project end), or CIS (Construction Industry Scheme) tax deductions. 

## Invoice Factoring in the Construction Sector

### How Does It Work?

- **Issue the Invoice:** Bill your client as usual, due in 30/60/90 days.
- **Upload invoice** to your funders portal
- **Receive Advance:** Draw down up to 85% of the invoice value to cover immediate costs
- **Collection:** The funder takes responsibility for colecting the debt from your client
- **Balance:** Once collected, your receive the balance of the invoice, less fees.

[Email Us](mailto:hello@optimisedfactoring.co.uk)

### Why consider it?

- **Cash Flow Boost:** Fund payroll, materials or new bids without waiting
- **No added debt:** Based on invoices, not loans, leaving other credit options
- **Credit Control Handled:** Funder manages collections, saving time on sit management.
- **Scalable:** Grows with your turnover and growth plans
- **Sector Fit:** Specialist lenders familiar with specifics like CIS and retentions

[Email Us](mailto:hello@optimisedfactoring.co.uk)

### Costs/Considerations

- **Fees:** 1-4% per invoice, varies by client credit and volume
- **Disclosed/Confidential:** Clients are aware (disclosed) or not (confidential)
- **Eligibility:** Needs creditworthy clients; bad debts often excluded.
- **Bad Debt Protection:** available subject to debtors creditworthiness.
- **Concentration Limits: :** Vary between lenders , important to match with your companies debtor profile.

[Email Us](mailto:hello@optimisedfactoring.co.uk)

## Is it the right move for you right now?

If payment delays are holding back your ability to take on new projects, hire more staff, or keep operations running smoothly, invoice factoring could shift your focus back to building rather than chasing payments.

We'll start by reviewing your outstanding invoices and client payment patterns. Then, we'll present you with the top quotes from our lender panel construction specialists to compare tailored options quickly and confidently. Once you've decided on the right lender for you, we'll help you through the onboarding process so that you're ready to start utilising the facility.

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Optimised Factoring is a trading name of Don Jewell. We act as an independent credit broker introducing UK business customers to a panel of commercial lenders. We are not a lender and not tied to any particular lender. We provide introductions to unregulated business finance only and do not offer, arrange or advise on regulated lending products..

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