Take Control of Your Construction Financing: Make the Switch to Hubble.Financial
Are you a contractor in the construction industry struggling with cash flow and financial risk management amidst rising material costs? Are you concerned about the cost and potential negative impact on relationships with invoice financing programs?
Look no further than Hubble.Financial, a financial services division of Hubble with a wealth of experience serving the construction industry. By partnering with Hubble.Financial, you can enjoy early payment, reduced financial risk, and improved relationships with your main contractors and subcontractors. With the hassle-free digital application, fast approval and funding, transparent pricing, and tailored financing solutions for the construction industry, Hubble.Financial can help you achieve more with less. Make the switch to Hubble.Financial* today and take control of your cash flow and financial risk management!
Improve Cash Flow, Manage Financial Risk, and Deliver Projects
The rising cost of materials is another significant challenge facing the construction industry. This increase in cost has led to an increase in project costs, decreased profitability, and heightened financial risk for construction companies. As per a forecast by Turner & Townsend, the cost of construction materials is expected to rise by 25% to 28% in 2024, compared to the equivalent of 2020.
To tackle this issue, construction companies can consider utilising invoice financing as a solution. This financial instrument allows companies to receive advances on their outstanding invoices, eliminating the need to wait for payment from their customers. By utilising invoice financing, construction companies can not only improve their cash flow, but also increase their project completion rate and decrease their cost overruns, thereby mitigating financial risk.
Invoice financing can provide a number of benefits to the construction industry, including:
- Improved cash flow: By seeking financing on their unpaid invoices through a factoring service provider, sub-contractors can access early payment much sooner than they would if they had to wait for payment from their main contractors. This can help to improve their cash flow and give them more financial stability.
- Reduced financial risk: Invoice financing can help to reduce financial risk by providing sub-contractors and main contractors with a reliable source of funding. Invoice Financing Facility limits usually grow with the sales volume or contract of the business. This can help to reduce the risk of running out of funding availability or having to take on last minute debt to finance their operations.
- Improved main contractor and subcontractor relationships: Invoice financing can provide suppliers and subcontractors with early payment of their invoices, which can help to improve the relationships between main contractors and their suppliers and subcontractors. Furthermore, Invoice Financing Service Providers can work through the Main Contractor to provide early payments to their suppliers and subcontractors invoices (through buyer led arrangement). This can help to improve trust and cooperation between all parties involved in a construction project.
However, it's important to note that not all invoice financing companies specialise in the construction industry with many offering services to a wide range of businesses. This has, over time, arisen to the concerns of both the main contractors (buyers) and sub-contractors (suppliers) over invoice financing, such as the cost of financing, the perceived loss of control over the process of payment and the potential for negative impact on main contractor and subcontractor relationship.
When choosing an Invoice Financier, partner with a service provider that has experience working in the construction industry and understands the unique challenges and complexities of the sector. Alike to Hubble.Financial, a financial services division of Hubble with wealth of experience serving in the construction industry, understand the unique financial challenges faced by sub-contractors (supplier) in today’s business landscape of the construction industry. By focusing mainly on the construction industry, Hubble.Financial can offer a higher level of expertise and support to the contractors, providing transparent pricing, fast and hassle-free application service to help make invoice financing more accessible and appealing.
With Hubble.Financial*, greater control and certainty can be achieved
- As a main contractor (buyer)
- Early payment to the sub-contractors and suppliers without a cost to Main Contractor
- Stronger and healthier supply chain
- Better managed liquidity and relationship with supplier
- Replication of arrangement into other parts of the region
- Deals with one Invoice Financing provider
- Does not affect your banking limit
- As a subcontractor (supplier)
- Hassle-free digital application, with only 3 documents required
- 1 day approval
- 1 day funding, cash within 24 hours upon submission of invoice
- 1 pricing, so you will know the true cost of financing your project
- Pre-approved arrangement by Main Contractor (under Buyer Led Arrangement)
- No collateral required
- Option of pay only when in use, to provide you with greater control and flexibility
In conclusion, invoice financing is an effective solution for construction companies to overcome challenges such as rising costs of materials and heightened financial risk. With the right invoice financing provider, construction companies can improve their cash flow, reduce financial risk, and improve relationships with main contractors and subcontractors. By partnering with a provider that understands the unique challenges and complexities of the construction industry, such as Hubble.Financial, companies can benefit from fast, hassle-free, and transparent financing options. If you're a construction company looking to improve your cash flow, manage financial risk, and deliver projects more efficiently, we encourage you to consider Hubble.Financial's invoice financing solutions*. Contact us today to learn more and make the switch.
*Subject to assessment and approval. Terms and conditions apply.
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Option of pay only when in use
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End your search now and sign up for Hubble today by 30th April 2023 to get up to 6 months of free subscription! Limited time offer.
Make the smart move to take control of your business and get your invoices funded on time, every time!
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