It can feel lonely if you are a small builder, carpenter, elevator installer, roofer, floorer, scaffolder or do groundwork, and need finance.
After mainstream lenders opened their pockets to construction companies early last summer, the Bank of England’s lending figures have slumped to a negative 3 months growth rate (-8.9, April 2021) last seen in December 2020.
Even many alternative funders are cautious with the construction sector: Think volatile cash flows thanks to project based work and late payments (or unpaid work), and the need for expensive equipment.
To increase your borrowing chances
⚒️ watch out for lenders who specialise in construction and contractual businesses,
️ check the amount of outstanding invoices (not older than 120 days) in your sales ledger; this may be your best security for cash flow finance,
consider a revolving credit if you need smaller amounts of money regularly, you prefer a rolling credit agreement, and your bank won’t extend your overdraft,
⚙️ check the value of plant, machinery, machine tools, HGV, trailers and other business assets, and find a lender who releases equity by refinancing construction assets.
If you'd like to discuss your business or property finance requirements, please email me: bcacao@cc-finance.co.uk
"If you need to raise funds for your business or property have you spoken with your bank yet?" This is the first question I ask business owners, property developers and landlords. High street banks…
