Invoice finance for electrical and mechanical contractors
Electrical and mechanical contractors can finish billable work before the customer releases payment. Explore invoice finance around eligible service invoices and carefully assessed contract receivables.
Positive Funding Limited is a finance broker. Funding is subject to provider assessment and agreed terms.
Match the funding to the type of work
A routine maintenance invoice and a staged installation application do not have the same payment conditions. Both may sit in your accounts, but a provider will need to assess the underlying entitlement.
Separate reactive work, planned maintenance and project installations. This makes it easier to identify which completed work could release cash towards wages, subcontractors and supplier bills.
Document completed jobs
Keep job sheets, customer acceptance and relevant completion records together.
Identify project deductions
Show retentions, disputed variations and other amounts that may not be collectible yet.
Forecast labour commitments
Allow for the gap between paying your team and receiving approved customer payments.
Assessing your contractor receivables
Explain the payment entitlement
Provide the invoice or application alongside the relevant order or subcontract. Clarify whether approval is outstanding.
Agree what can be advanced
The funder reviews contractual conditions and the customer balance. Specialist assessment may be needed for construction-related applications.
Reconcile the payment received
Check remittance details against approved debts, deductions and advances. The remaining settlement follows the agreed facility calculation.
A contract value is not the amount available to draw
Retention, variations, set-off and performance issues can separate a project’s headline value from its current payable balance. Explain any certification or payment notice relevant to the sum claimed. Funding should be based on an assessed receivable, not an assumed percentage of the whole project.
Consider administration alongside funding
Invoice factoring
Factoring can support collections on accepted service invoices. Ask how contract queries will be handled where technical input from your team is needed.
Invoice discounting
Contractors with effective debtor control may prefer discounting. The provider still needs dependable reporting and a clear view of deductions.
Selective invoice finance
A selected-contract arrangement may be worth discussing for an isolated payment gap. Acceptance of an invoice does not imply that every future application will also qualify.
Compare factoring and invoice discounting before choosing who manages collections.
Illustration: an eligible maintenance account
An approved £32,000 maintenance debt at an assumed 80% advance yields £25,600. The other £6,400 remains before fees. An installation application subject to retention could produce a different eligible amount.
This example explains the arithmetic and is not an offer for either type of work.
Price the contract administration
Ask whether specialist reviews, account checks or extra reporting carry charges. Compare these with ongoing service and funding fees, minimum commitments and termination terms. Our fee guide helps you assess the full cost rather than just the advance percentage.
Prepare evidence for both service and project work
Bring an aged debtor report, sample job approvals, installation subcontracts and recent accounts. List retention balances, open variations and disputes separately. Include supplier commitments and current finance when explaining the funding gap.
Electrical and mechanical contractor questions
Can routine maintenance bills qualify?
They may where the service is complete and the commercial customer owes an identifiable debt. Evidence of completion and any contract deductions will be reviewed.
Are applications treated like ordinary invoices?
No. A construction application can require specialist assessment of the payment position. Tell the provider what has been certified or challenged.
Can we draw against retention?
Do not assume so. Retained amounts may be unavailable or considered separately, depending on when payment becomes due and the facility terms.
Will funding cover materials before installation?
A standard invoice arrangement generally depends on an eligible receivable. Materials purchased before billable work is completed create a separate cash requirement.
Discuss the work behind your invoices
Tell Positive Funding how much of your turnover comes from maintenance, call-outs and project installations. That helps focus a funding discussion on the receivables your business actually produces.
Funding is subject to eligibility and provider agreement. Fees, guarantees and security requirements vary. Explore other business sectors.