Faster Payments for Suppliers & Sub-Contractors

posted 21.01.2014

Nucleus Commercial finance is offering medium sized contractors the chance to set up an early payment system with their suppliers and sub contractors.

The first major contractor to set up a similar scheme was Carillion, in which their suppliers pay a fee to have their invoices settled early, with payments coming direct from the bank rather than the main contractor.

Nucleus have now introduced a similar service that is open to contractors with a turnover of £20m plus.

Nucleus Managing Director Chirag Shah said: ?These early payment schemes have proved popular but are only being offered by the really big contractors at the moment. Medium sized contractors often feel under-served by their bank which is where we come in ? Nucleus can set-up and run these schemes for them.?

Carillion already has more than 200 subcontractors and suppliers signed up to its scheme.

Shah said: ?Suppliers like the scheme because it gives them a guaranteed cash flow and certainty of payment. Main contractors also benefit from a more predictable cash flow while they can build better relationships with trade contractors by offering them favourable terms.?

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Recipro sourced this article from Construction Enquirer.

 

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