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Invoice Finance for Scaffolding Companies

In scaffolding, the money is earned long before it's paid. Wages go out every week; head contractors pay progress claims in 30, 45, sometimes 60 days. The gap between those two numbers is why profitable scaffold companies still hit cash crunches — and it's exactly the gap invoice finance exists to close.

How it works

You raise your progress claim or invoice as normal. The financier advances typically 80% of its value within a day or two, and releases the balance (minus fees) when the builder pays. Your cash cycle shrinks from 45 days to 48 hours; the facility grows automatically as your book grows.

What it costs — honestly

Expect a facility fee plus a discount rate on funds drawn. It is dearer than a bank overdraft — but the comparison that matters is the cost of the alternative: turning down the next job because this month's wages used up your cash, or paying suppliers late and losing early-settlement discounts and goodwill.

Construction-sector reality check

Many generalist invoice financiers exclude construction progress claims entirely, or cap them hard — contractual claims are messier than clean trade invoices. This is where a broker earns their keep: knowing which financiers genuinely fund building-sector paper, and how retention and variations need to be presented.

When invoice finance is the wrong tool

• If your debtor book is one slow-paying builder — the financier will cap how much they advance against a single builder
• If margins are already too thin to absorb the cost — fix pricing first
• If the real problem is an unprofitable contract — finance only delays the problem — it doesn't fix it

Getting set up

Facilities can be established in days: recent aged debtors, sample contracts/claims, and bank statements are the core pack. Confidential arrangements (your builder never knows) are available for established operators.

Related guides: Complete equipment finance guide · Financing used gear