Factoring for the construction industry – a good idea
Research conducted with companies from the construction sector clearly shows that as many as 42% of companies have met at least once with op The company has to settle up with its contractors on the basis of deferred payment invoices . This situation has led to problems The risk of a loss in the payment of debts has had a negative impact on the financial standing of companies and their reputation. After all, late payment of debts is a shot in the arm for your image, and in extreme cases can lead to termination of the contract in, loss of liquidity and bankruptcy.
Why is the construction industry exposed to factoring??
Running a construction company is fraught with very large recurring expenses, such as buying materials and , transport, machine rental, taxes, social security contributions, salaries, purchase of protective clothing and many others. Due to the nature of the industry, contracts are often written in this way The time between the receipt of a service or product and the payment of a fee can be extended as much as possible. Moreover, the lack of recurring transactions can be problematic in terms of maintaining liquidity and ensuring funds You should be able to afford all your expenses, kt re enabling your daily operations.
There is a solution – factoring for the construction industry
Due to the specific It is worth using a factoring service in order to avoid the risk of unpaid debts. It consists in the fact that the factoring company buys from you past due invoices, pays you the resulting funds and you can start developing your business. Here are some details verbal description of the invoice financing service.
1.You provide a service or sell a product
To m c m Invoices are necessary to provide factoring services and you can issue them to your clients only after the services have been rendered. Make sure your document payment terms are between 7 and 90 days.
2.You send the invoice to the factoring company
In modern factoring, sending invoices is very simple and does not require letters You send the invoice to the factoring company in person. A photo or scan sent to the factoring company’s e-mail address is enough to m c start your invoice financing adventure.
3.The money is paid to your account
After a preliminary analysis of the data and the correctness of the invoice, funds are transferred to your account, which are then paid to your bank account The amount of the fee is specified in the agreement with the factor. Usually ready The amount of the loan is in the account of the entrepreneur on the same day rym sent documents.
4.You are developing your business
Once you have the money, you can grow your business without worrying about your money. The factoring company will take care of collecting the receivables from your counterparty and you will not be affected by debt collection issues.
Who can choose factoring?
Factoring is now a service that The factoring industry is characterised by high availability and low conditions that need to be met by potential clients.
- The company must be in business for at least 12 months.
- Factoring is available to sole traders, small and medium sized companies, sp You have to be aware of the fact that you have a limited liability company and a limited liability company equity funds.
- The company has to settle accounts with contractors on the basis of deferred payment invoices.
- Neither the company nor the contractor can be entered in debtors databases in (BIG, KRD).
- The payment term on the invoice must be between 7 and 90 days.
- The gross invoice amount should be higher than 250 PLN.
Why choose factoring??
If you are interested in this service, it means that you have already encountered the problem of unpaid invoices. Factoring is a solution that re will help you maintain financial liquidity and make daily operations much easier. Besides, the advantages of this service are:
time saved – forget about the time-consuming process of recovering the money owed. All you need to do is send an invoice to receive the funds the same day;
competitiveness – Long payment terms are well-received by other businesses and encourage them to support you e are looking forward to working with you;
minimum formalities – factoring itself is not time-consuming, and all the formalities can be done online, which is very beneficial in the case of people b, which They value their j time;
simple rules – factoring is a paperless contract and lengthy procedures.
Take care of your business
Companies in the construction industry are at risk of losing liquidity due to the unpredictability of the market in which they operate. This does not mean, however, that business owners must live in perpetual fear. Online factoring It is a service that ra will help you in your everyday activity and will make the money for the performed service cease to be an issue.
