- 06 Mar
19% Of Construction Businesses Have Had An Invoice Finance/Applications Finance Quote
Of the 100 randomly selected construction sector businesses that we interviewed in our #constructionfinance survey only 19% said that they had ever received a quote for construction finance either in the form of invoice finance or finance against applications for payment.
Of those 19 - 2 had subsequently taken up a facility - one with Lloyds TSB and one with Bibby.
We did a quick analysis of the reasons why the other 17 didn't go ahead after getting a quote and the results were as follows:
- 10 said the quote was too expensive (6 said they were quoted by Lloyds, 1 by Calverton, 1 by Close Invoice Finance, 1 said Venture Finance who are now known as ABN AMRO Commercial Finance and 1 did not say)
- 4 said they were declined (2 by Lloyds TSB and one each by Aldermore and SME Invoice Finance).
- 3 said they didn't think they would be suitable.
Note that the number of times that some invoice finance businesses were mentioned could simply be a reflection of how active they are within the sector.
It should also be noted that since completing our survey further invoice finance companies have also moved into this construction industry niche.