Businesses will expect to be concerned the first time they used construction invoice factoring because they may be unaware how their customers will react to a factoring company chasing an invoice for work completed by your company. You will need to have answers ready to placate their worries.
Construction Business Levels Vary
Working in the construction business, your customers will be aware that business can be extremely seasonal and they may have been approached by factoring companies before using construction invoice factoring. When you inform your customers that you are using the factoring system, they may already understand how it works and who they will pay.
The factoring company will receive your invoice for work that you have completed, and they will be responsible for collecting the finances for the debt. Whenever they receive the finances does not affect your business as they will have paid you within 24-48 hours of issuing the invoice and confirming that the products or services have been completed.
Is Your Business Failing?
When you are making the most of the construction invoice factoring company, you may be concerned that the businesses that would have paid your invoice previously and will now pay the factoring company, that you are struggling because you need the finances so urgently.
This will almost certainly not be a problem. You will have explained why you are using a factoring company to advance your cash flow and the business that was due to pay your invoice will not mind who they are paying if the work is completed.
By understanding that you will receive funds from the factoring company, they will be more impressed that you are likely to continue in business because your cash flow will be improved.
Support from your clients is likely to continue because they are going to investigate factoring companies if they have never experienced the situation before and find out that this is good business practice.
