Construction Finance is a method of funding designed specifically for contractors and subcontractors.
It is a simple way of gaining a cash advance for a construction project against staged invoices or funding applications. Basically, it allows you to borrow against what you are owed.
This means that you can fund a construction project with certainty over your available funds and without having to wait for payment of outstanding invoices/applications from customers.
We do not tick box lend and we appreciate no two contracts are alike but generally payments are made upon completion at certain stages of a construction project. This is usually when a certain milestone has been completed and signed off for, for part or completed works as per the agreed schedule.
What Is the Advantage of Construction Finance?
There are several advantages of this type of funding:
- Contractors are usually able to get better terms from suppliers by paying them more promptly, or it can help ease the burden for those with which they are on pro forma terms.
- Assistance to complete (and win) lengthy contracts without the burden of restrictive loans and overdrafts.
- Unlocking cash that would be tied up in a lengthy contract.
How Can 4Syte Help with Construction Finance?
Here at 4Syte we provide four different types of funding across all business sectors.
Our founders, having a background in investment banking and finance, started 4Syte in 2016 with the aim to create a financing company capable of funding the working capital and cashflow of SME businesses in the UK.
Our 4 different product services are:
4Syte Construction Finance; a funding service specifically dedicated to offer full or part funding to construction projects.
4Syte Funding; designed to offer invoice finance across all business sectors.
4Syte Trade; this is a service that can provide funding for the whole trading cycle, including import finance and purchase order finance.
4Syte Structured Finance; this loan service is for short- and medium-term business loans to companies secured against residential or commercial property.
For Construction Finance, we offer credit facilities ranging between £25,000 and £1,500,000.
We also provide a credit management service, so you don’t need to worry about keeping track of credit limits and safeguarding yourself against customer insolvency.
The criteria for construction finance applicants are quite simple, “A UK registered limited company with a reasonable operating performance and balance sheet of strength. Partnerships and Sole Traders with transaction values in excess of £25k can be considered in exceptional circumstances. Clients must be willing to provide both a debenture and personal guarantees.”
A Rapid Response Time
Unlike most finance companies, you won’t have to wait weeks for an answer or complete reams of paperwork. Upon receipt of a completed application, our underwriters will get back to you within 48 hours.
Get In Touch
If you would like some more information on our Construction Finance service, then please do not hesitate to contact us. Our team of experts will be more than happy to answer any questions that you may have.