Construction finance

The phrase “cashflow is key” is relevant to every industry but it is vitally important within the construction sector. However, trying to navigate through and understanding the options available to finance a construction project can be challenging.

Construction finance (also known as construction loans or building loans) has 2 key purposes. It can be used to purchase items needed to fulfil a construction project or it can be used to bridge the gap between 1 construction project being finalised and awaiting final sale and the start-up of a new project.

Often issues occur in construction projects when everything is built and waiting to be sold. It will result in late payments, extended contracts and a delay in new projects starting. However, suppliers and employees will still need to be paid causing a negative deficit on cashflow.

Some important information to note about construction finance:

• It is an ideal solution for bridging the financial gap between 1 project coming to an end and another starting – you don’t need to delay any work
• A building company can continue to meet their construction targets
• Concerns over the purchasing of material, hiring machinery, employing sub contractors and paying employees can be eradicated
• Consider using construction factoring which will allow immediate payment of invoices, no longer do companies have to be concerned over 90- or 120-day payment terms

The benefits of construction finance include:

• Money is made available within 48 hours of a successful application
• Interest rates are very competitive and often much more beneficial in comparison to bank overdrafts
• Avoid bad debt by being able to pay bills on time
• Remove cashflow concerns and focus on the running of the business

Did you know there is a specialist finance package for purchasing scaffolding. Scaffold Tubes, fittings and boards can all be funded via asset finance. To find out more please follow this link – https://ngibuild.veep.uk/business-finance-services/business-asset-finance/scaffolding-finance/

To find out more about construction finance or if you are looking for some help, please call us on 01993 706403 or e-mail enquiries@ngifinance.co.uk.