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Factoring a scaffolding company

On the basis that most scaffolding companies are working to contract many such businesses wrongly assume that they are not eligible  for a factoring or invoice discounting company. The good news is that one or two invoice finance companies will provide a factoring service.

However these factoring companies are not your high street banks but independent companies that specialise in factoring and construction finance. They have their own in house quantitative surveyors that can accurately asses the value of work undertaken. It is very unlikely that a scaffolding company will get the full 80% but more likely that a maximum of 60% prepayment will be achievable. In addition the factoring company will be looking to make sure that all the scaffolding equipment is mainly free of finance. This is because they wouldn’t want a leasing company removing the scaffolding half way through job and thus making all the contract null and void.

The finance company needs to know that they have control over the equipment in the event of an administration so that they can finish the job and get paid. Any factoring company that doesn’t understand this is potentially putting the directors at risk via any personal guarantees that may have been given. Ass such it is worth giving us a cal to see if a factoring facility will be beneficial to your business. We have over 10 years experience in this market and we are certain that we can add value to the proceedings.

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XL Business Finance Ltd is a privately owned and independent business financing company with established links to many of the UK's leading finance houses. XL Business Finance provides a viable alternative to high street banks that lack the flexibility and imagination to provide a solution to most business users requirements. XL Business Finance can provide a full range of business financing solutions and we ensure a high level of customer service and pride ourselves on quick decisions. Our independent status will ensure any offer of funding and asset finance leasing is best suited to our customer’s needs.

XL Business Finance, Eaton Place Business Centre, 114 Washway Road, Sale, Cheshire M33 7RF UK.

 

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