Construction finance Ireland for contractors

Match the finance to the need. Vans and plant are usually funded by hire purchase or leasing, gaps between payment claims by a working capital loan, and tax bills by a short-term loan. Through Welcome Finance, construction companies registered in Ireland (LTD, DAC, PLC or ULC) can apply, including start-ups, although most lenders look for some trading history. Lenders want filed accounts, bank statements, a current tax clearance certificate and a picture of your current contracts.

Usually, yes. Vans are commonly funded by hire purchase or leasing from an asset finance provider, with the van as security, so lenders focus on the van's cost and age, your deposit and the company's trading. A VAT-registered company can usually reclaim VAT on a commercial van, unlike most cars; our guide to commercial vehicle VAT, capital allowances and BIK explains the rules. Tell us what your company needs and we'll tell you honestly whether our panel can help, or where to apply instead.

No more than 30 days after the payment claim date, for contracts covered by the Construction Contracts Act 2013. Contracts worth €10,000 or less, and contracts only for a home of 200 square metres or less that a party lives in or will live in, are exempt. If the contract sets no claim dates, default dates apply: 30 days after work starts, every 30 days to substantial completion, and 30 days after final completion.

Generally not. The Construction Contracts Act 2013 makes a clause that ties your payment to the main contractor being paid under another contract ineffective, unless the party further up the chain is insolvent. So a main contractor cannot normally hold back your money just because the client hasn't paid. If it disputes the amount, it must respond in writing within 21 days of the payment claim date, giving reasons.

Act quickly and in writing. Serve your payment claim notice no later than 5 days after the payment claim date. If the other party disagrees, it must respond within 21 days of that date. You can then serve a notice of intention to refer the dispute to adjudication; if you can't agree an adjudicator within 5 days, either party can apply to the Chairperson of the Construction Contracts Adjudication Panel. The decision can be enforced through the High Court.

Rarely on their own. Retentions are held back until completion or the end of the defects period, and invoice funders usually won't advance against them, or only at a low rate, because the amount depends on future defects and set-off. The Construction Contracts Act 2013 doesn't set a specific timetable for releasing retentions, so your contract terms decide when you are paid. Many contractors plan working capital to cover the wait.

It makes it harder. Revenue sets your RCT rate from your tax compliance record: 0% for an up-to-date record, 20% for a substantially up-to-date one, and 35% for a poor record or no registration. Lenders read a higher rate as a sign of tax problems, and most want a current tax clearance certificate. Resolve the issue in ROS, then use the RCT self-review option to have your rate reconsidered.

Mostly through offset rather than cash. When a principal contractor deducts RCT, Revenue credits it to your company's record and offsets it against liabilities such as PAYE, VAT and corporation tax once the relevant returns are filed. Until the credit is used, the cash isn't in your account, which is why RCT squeezes working capital. A working capital or short-term loan, which our lender panel covers, can bridge the wait.

No. Welcome Finance does not arrange development finance, which covers site purchase, self-build and loans to build houses or apartments for sale: banks and specialist development lenders provide it. Our panel may help construction companies with business-purpose funding, such as working capital or short-term loans for wages, materials and tax bills.