- 25 May
Finance For Construction Company In CVA
Finance for a construction company that's in CVA (creditor's voluntary arrangement)? Most financiers would say "no thank you" but we have partners that can help.
Getting Finance With A Bad Credit History
It's common when a company has financial problems, or a poor credit history, to just assume that you won't be able to raise any finance from anywhere. Everything these days seems to revolve around having a clean credit history, and a decent credit score.
Thankfully there are finance companies that can help a company that doesn't have a clean record. Finance can still be available even if you have a CCJ (County Court Judgements) or an arrangement like a CVA in place. The finance isn't going to be as cheap as if you have a triple A credit rating, but when you have a bad credit history, price is unlikely to be your top concern - finding someone that can inject a substantial amount of finance into your company may be.
CVA Creditors Voluntary Arrangement
A CVA or creditors voluntary arrangement, is a form of insolvency procedure that allows a company with debt problems to reach an agreement with its creditors, to repay all or part of its debts over an agreed period of time. The arrangement is agreed by a court. It will be a matter of public record that the company has such an arrangement in place, and this will mean that many business finance companies will not provide finance.
Construction Sector With A CVA?
I have mentioned many times the issues with funding the construction sector, there are only a few providers that are prepared to tackle the sector. However, there are even fewer that will consider a construction sector business, that is in a CVA. We have partners that have looked to fund companies that are specifically in that situation. They have specialist staff to understand the nature of construction sector contracts and they will structure finance for a company, leveraging whatever assets the company has to offer as security. This can include book debts (sales invoices that are outstanding), property or other assets.
Let Us Try To Help
If you are in a difficult situation, and you think that you can't raise any finance for your business because of bad credit history, give us a try and see if we can help. Even if you are trying to avoid going into a CVA we may be able to help. We welcome the challenge and you will have nothing to lose and everything to gain.