HPD Software has launched ‘Aquarius Construction Finance’ specifically for lenders who fund construction sub-contractors.
Through Aquarius Construction Finance the lender can manage the overall construction contract. It tracks the cumulative billings against contract value and aligns this to the certificates issued for works completed and eventual payments. The system applies the contract terms in respect to main contractors’ discounts, retentions and withholding tax.
The company said the module caters for sector nuances, such as variations to the contract, materials on site, additions and deductions to the contract scope and counter claims that affect the collectible debt.
Sub-contractors can enter applications online, with funds being drawn in a similar way.
Kevin Day, chief operating officer at HPD Software, said: "The construction sector has historically been a difficult area to finance due to its complexity and risk profile. The majority of banks and finance providers have tended to shy away from this ‘unfactorable’ debt, although a clear need for financing exists.
"Current solutions are labour intensive with manual recording and tracking processes. Lenders generally rely upon spreadsheets to track contracts, with the inherent risk that this method causes.
"Finance providers servicing these sub-contractors with invoice finance need lending software to make the process as seamless, efficient and risk averse as possible, which to date has not existed. In response to industry feedback and extensive cooperation, we have developed Aquarius Construction Finance, which we are now pleased to launch in the market."