Invoice purchasing for construction and contracting companies – the solution to long payment times
The construction and contracting industry is one of Sweden's most liquidity-challenging sectors. Long payment times, high material costs, advance payments to subcontractors and projects that span several months often strain cash flow – even when the order book is full.
More and more construction companies are therefore choosing to sell invoices and use invoice purchasing as a way to get paid immediately, avoid waiting 30–90 days and create stability in projects. In this guide, we will go over why invoice purchasing is particularly effective for construction and contracting companies, what it costs, how it works and when it is the right choice.
Why construction companies are hardest hit by long payment times
Construction and contracting companies have a unique combination of challenges:
Material costs often need to be paid quickly
Subcontractors demand payment before the end customer pays
Projects run over a long period of time
Final inspection and approval may delay payment
Large customers (municipalities, real estate companies, general contractors) often have 30–90 day payment terms
Late payments are common
This means that even profitable construction companies can experience liquidity problems – not due to a lack of jobs, but due to the time lag between costs and revenues.
How invoice purchasing solves liquidity problems in the construction industry
When a construction company sells an invoice, the company gets paid the same day, instead of waiting weeks or months. This means:
Stable cash flow
Possibility to take on more projects
Pay suppliers and subcontractors on time
Less dependence on expensive credit or loans
Less administration and reminder management
Invoice purchase is not a loan – it is a sale of an account receivable. This means that you do not increase your debt, which is a big advantage for construction companies that want to grow without burdening the balance sheet.
How much does invoice purchasing cost for construction companies?
The cost of invoice purchases varies depending on:
Customer creditworthiness
Invoice size
Payment terms
Industry (construction often has higher risk → slightly higher cost)
Volume and recurring invoices
Typical costs in the construction industry often range between 1.5–4 % per invoice, but can be both lower and higher depending on the risk profile and project.
The important thing is to compare the cost with:
the cost of late payments
the cost of turning down projects
the cost of laying out materials and wages
the cost of taking out a business loan
For many construction companies, invoice purchasing is the cheapest way to free up capital quickly.
How invoice purchasing works for construction and contracting companies
The process is simple:
- Your company is carrying out the project
- You send the invoice to Finans Partner
- We perform a credit assessment of your customer
- You get paid the same day by Finans Partner
- Finans Partner will forward your original invoice to your customer with a notice that they should pay the amount to our BG on the due date.
Why invoice purchasing is particularly effective in various construction projects
You don't have to worry about material costs
Materials are often the largest expense in construction projects. Invoice purchasing allows you to pay suppliers directly without burdening the cash register.
You can pay subcontractors on time
Keeping UEs happy is crucial to meeting the schedule. Liquidity creates stability.
You can take on more and bigger projects
Many construction companies turn down new projects due to liquidity risk – not a lack of assignments.
You reduce the risk of cash flow crises
A single delayed project can create a domino effect throughout the entire business.
You avoid long payment times from public clients
Municipalities and regions are reliable customers – but payment times are often long.
Example: How invoice purchasing helps a construction company in practice
A construction company in Stockholm receives a project worth 1.2 million SEK.
The material cost is SEK 350,000 and subcontractors must have SEK 200,000 before the customer pays.
Without invoice purchase:
The company must be out of pocket with SEK 550,000
The cash register is getting strained.
Risk of turning down other projects
With invoice purchase:
The company gets paid immediately
Materials and UE are paid without stress.
The project can start immediately
Liquidity is secure throughout the project
The cost of invoice purchasing is often a fraction of the value of being able to take on the project.
Frequently asked questions from construction companies
Is it expensive to sell invoices?
The cost is often lower than the alternative: late payments, loans or lost projects.
Does it affect the customer relationship?
No. Finans Partner works discreetly and professionally. The customer will not notice any difference except that they pay our BG on the due date when you have already received payment from us.
Can you sell ROT and RUT invoices?
Yes, but the structure is slightly different. We will help you with the right structure.
Can you sell installment payments in projects?
Yes, ongoing installment payments and lifting plans are common in contracting.
Summary
Construction and contracting companies often have strong demand but weak liquidity due to long payment times and high upfront costs. Invoice purchasing is therefore one of the most effective tools to:
strengthen cash flow
take on more projects
reduce risk
avoid more loans
create stability in the business
For many construction companies, invoice purchasing is not just a financing solution – it is a growth engine.
Sell your invoices quickly and easily with Finans Partner
Get paid the same day you invoice, free up capital and create secure liquidity in your company's construction projects.