Construction Project Finance
Traditionally the way of financing construction projects was either via a bank loan or bank overdraft but these forms of inance can have limitations. Banks tend to seek tangible security in order to support such lending and are often very concerned with the financial position of the company to who they are lending. There is a new alternative way of financing construction projects through Construction Project Finance where the finance is secured against the strengh of the transaction rather than just the construction company.
How Construction Project Finance Works
This type of finance works differently to bank loans and overdrafts, as follows:
- You raise either applications for payment or sales invoices
- These can be raised at particular stages of the project i.e. for stage payments
- The finance is provided against the applications/invoices, as a percentage e.g. 70%
- Finance can even be provided against uncertified applications for payment
- When the payment is received the balance e.g. 30% is released less charges
Please follow this link for more detailed information about the types of sectors and who may be eligible: More Information About Construction Project Finance
Alternatives - business loans and property loans.
How To Access Construction Project Finance
There are only a few specialist Construction Project Finance companies that provide this type of finance, just request a call back and one of our advisers will put you in touch with these specialists: REQUEST A CALL BACK REGARDING CONSTRUCTION PROJECT FINANCE