Property development - dealing with late payments and contractor overruns

• Cash flow challenge: My property development project is facing late client payments and contractor overruns, and it’s creating gaps in my cash flow that threaten progress.

• Perfect for: Property developers and contractors dealing with payment delays and rising costs during construction projects.

Novuna helps property developers protect cash flow when payments are late or costs overrun. We compare finance providers, support your application, and secure the right solutions to keep projects moving.

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Why late payments and overruns are so common

Property development often relies on staged payments and multiple subcontractors. Delays in client payments or overspending by contractors can quickly create funding gaps that disrupt timelines.

How late payments affect development projects

• Contractors and suppliers may stop work if not paid on time

• Project delays increase holding costs for land and finance

• Sales timelines may be pushed back, delaying income further

Managing contractor overruns

• Agree clear contracts with penalties for delays or overspending

• Monitor progress regularly and maintain open communication

• Hold back a retention sum to incentivise timely completion

• Factor in contingency funds for unexpected costs

Funding solutions to bridge the gap

Development finance

Provides staged funding to cover construction milestones.

Bridging loans

Short-term support to keep projects moving when payments are delayed.

Working capital loans

Flexible funding to cover overruns or unexpected costs.

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How Novuna Business Cash Flow helps

Novuna specialises in funding for property development projects. From bridging loans to development finance, we ensure you can cover overruns and payment delays without halting progress.