Create a contractor invoice sample with the information below. Supporting information is also usually required. It follows the work required by the contract, including any change orders, to determine the amount due. The factoring company were able to construct a factoring facility with a prepayment percentage that would account for the CIS invoices, and meet their funding needs.Construction Invoicing Basics Invoice Template EssentialsĪ construction invoice or payment application provides an account of the work completed and materials provided through a certain time period – typically a month. They were able to accommodate the rapid rise in their funding requirements and accept and fund against the CIS invoices. Although the field of funders that will deal with CIS is narrow, we were able to introduce them to a specialist funder that could help. Therefore, they came to us to find them lower-cost expansion finance that could accommodate funding against their CIS invoices. However, this was going to prove very expensive if they achieved their growth ambitions. The company in question already had a white-label invoice financing facility in place. This level of growth will cause cash flow problems for most businesses. Their annual sales turnover was predicted to increase almost 7-fold over the next year. This particular client had some rapid expansion plans. This diluted the proportion of the sales ledger that CIS invoices represented. The sub-contractors can deduct these payments from their tax bills, however, the scheme exists to ensure that taxes are paid.įortunately, our client had other aspects to their business including sales to other sectors. It requires that some contractors deduct money from their payments to sub-contractors, and pass it to HMRC. The Construction Industry Scheme (CIS) is operated by the UK government.
In a recent case, we were able to find factoring for CIS invoices for a recruitment company that needed funding against some CIS invoices to debtors in the construction sector. Factors tend to finance simple "sell and forget" sectors, so only a few will take on the issues associated with providing construction finance. Vote In Business MoneyFacts Awards 2015įactoring CIS Invoices In The Construction SectorĬonstruction is a difficult sector to secure invoice financing as it can be fraught with contractual obligations which are the bane of any factoring companies life.Invoice Finance Companies Research On Squidoo.Reasons Invoice Discounting Clients Switch.New Construction Project Finance Alternatives.Factoring Used To Buy Out A Company Director.
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