When I began working in the factoring and invoice discounting industry (all those years ago), I would often find myself feeling excited at getting a lead from my introducers only to discover after speaking to the client that it was ‘non factorable’…what an awful phrase and one that thankfully we don’t hear too often these days.
It was often referred to as contractual debt and was the ‘do not pass go’ for the underwriters. Stage payments, sign offs, retentions…the list continues. The frustrating thing was that often both the prospective client and the debtor were good businesses but due to the contractual nature of the debt it would be deemed as not factorable.
The good news is that things have moved on and there are now more lenders out there who are willing to look closer at Construction industry factoring deals. Often the deal will be structured to mirror the complexities of the contractural nature e.g. a lower advance rate on the debtor book. However we have now completed several factoring deals for construction companies and look forward to helping many others in the future.
If you think we can help you please get in touch.
