Building a Case for Construction Finance

If you need a few bob to fulfil that contract we can point you in the right direction.

A quick view of the London skyline is enough to tell you that the construction industry is at least managing to carry on in some areas despite tough economic times.  With more tower cranes erected in the city than the rest of the UK put together, hard hats and hi-viz jackets, rather than bowler hats and umbrellas, are now de rigueur for many of its workers.

Whilst oil rich Sheikhs, oligarchs and Chinese investors might well provide the funding backbone for many of these projects, they are a long way away from the people who actually sign off the payments for the many sub-contractors helping to get these buildings in the sky.

Bricks and mortar

Of course it’s not just the changing of the London vista that gives a hint to an industry that’s picking up. Helped not a little by the extended Help to Buy scheme even the country’s house builders are starting to review their forecasts upwards.

As with all areas of business however, this growth needs funding. If you’re lucky enough to actually own the land and have overall control of the project then it is still an attractive proposition for traditional lenders. Unfortunately if you own a firm with just a piece of the action and have a team of guys that need paying, it’s often not quite that easy.

Can we fix it? Yes we can!

The search for funding against JCT contracts and applications for payment can often be a frustrating one mainly due to a lender’s lack of understanding about the small print. Luckily the alternative finance industry now includes members that have made it their business to feel comfortable advancing cash against a sale that completes in stages.

Working alongside quantity surveyors, a thorough review of all the paperwork involved in a construction project allows them to set sensible and workable funding limits that could make the difference between paying the wages or hiding behind a skip on Fridays. Facilities can also come with optional bad debt protection giving extra security in these times of uncertainty.

Cementing a relationship

Our panel of trusted lenders includes those happy to help construction businesses overcome the problems of funding a team of guys on site at the mercy of certification. Their range of products can greatly enhance the cashflow cycle allowing delays and associated contract penalties to be avoided.

So whether or not you’re involved in something about to loom large in the London skyline or a smaller project elsewhere in the UK, we can help you lay the foundations for a partnership with a funder that understands your business.

By Stephen Leeves