Navigate The Construction Cashflow Challenge!
Since June, we have witnessed a promising increase of activity in the construction sector- which is encouraging for both small and larger firms that have been adversely affected by COVID-19. The sharp turnaround in performance can be attributed to two main factors; the ‘RoadMap To Recovery’, a phased plan of action proposed by the government to increase productivity, as well as the CBILS Government initiative. Whilst it is great to see businesses taking advantage of the reduction in restrictions and available financial support, there are still many challenges, including, what will firms do when CBILS ends on November 30th?
BDM Chris Hudson, reveals the challenges the construction sector faces as well as the necessary solutions…
“It’s great to see movement within the construction industry, especially Plant Hire businesses and suppliers of plant. If businesses had strong foundations prior to Covid, then they’re still in a strong position today- especially if they choose to work with firms that want them to succeed.
Whilst many construction businesses have utilised the government support to bolster their finances, there are still challenges. Due to manufacturers shutting down for a period of time, there is a reduction in available machinery, which has been further compounded by businesses looking to invest in new equipment due to competitive finance being available to them. In the interim, many businesses have been added to waiting lists for new equipment or are choosing to purchase second-hand. In terms of Chatsbrook clients, we are utilising our contact lists to source machinery to assist when we can.
Further, in many cases, freeing up cashflow can be more beneficial to a business in the long run, vastly outweighing the cost of using a funding facility to purchase an asset. With CBILS ending shortly, access to additional competitive funding options, such as Commercial Loans and Equity Release, can help to cover operational costs and avoid additional cuts.
Receiving funding from Chatsbrook is an investment into the future success of construction businesses.
When businesses want to obtain funding through Chatsbrook, our first priority is to establish an understanding of their business and the direction they’re heading in, enabling us to structure finance packages that are going to help them with their short- and long-term goals. This is the difference between a click through service you can access online, versus having a dedicated account manager who becomes an integral part of their business. Having in-depth knowledge of the sectors we work within means that we all have our individual strengths alongside having decades of financial experience between us. I personally find it rewarding to know that the effort that I put into securing funding for businesses and individuals enables them to realise their visions for growing their plant hire fleet or purchasing an excavator to be able to carry out renovations on their homes.”
To invest into your construction business, contact Chris today on 01603 733500 or email him directly chris@chatsbrook.co.uk
