Why knowing your finance options is crucial for Construction firms
09 October 2019
It’s broadly appreciated that uncertainty is the arch enemy of development. And if there’s one thing to be sure about, it’s that Brexit has pushed the level of uncertainty to an absolute peak, especially amongst the UK’s Construction sector.
In June this year Britain’s construction industry recorded its worst month in a decade, as construction firms blamed Brexit for a lack of new commissions.
The Federation of Master Builders (FMB) announced last week that is to launch its own bank for its members. They cited that the main driver for this was finance in the construction sector was becoming increasingly difficult to access.
Alternative Finance is now mainstream
Whilst access to finance from traditional banks may becoming more difficult and more painful to obtain, construction firms need to be aware that is not the case with alternative finance providers.
Alternative finance is now mainstream, as Andy Davies, Group Sales Director at White Oak UK explains:
Businesses have a lot more choice in the marketplace when it comes to access to finance, and that is something that we have seen grow significantly over recent years.
Long gone are the days when everything would depend exclusively on your bank. For construction businesses, it’s become more about simplicity, speed and service. When you are running a business, these are vital requirements.”
What finance is available?
Construction businesses are changing and as such, the finance needed to support them is changing too. Business finance providers such as White Oak UK are now commonplace as an alternative to bank lending, mainly due to the fact they offer a more holistic approach and can consider a broader range of funding requirements.
It’s important to know what different finance products can bring to construction businesses. They range from those that can provide an immediate cash injection to cover ongoing or upcoming projects to short-term ways of coping with late payments.
Improving access to cash flow is an increasing priority, but it is not insurmountable. Another simple solution offered by alternative finance allows firms to spread regular liabilities (such as VAT and Corporation Tax), helping to ensure they always have money in their business.
We recently looked at the many ways that finance can help construction firms and it is vital that awareness of these solutions increases in the sector if construction firms are going to successfully navigate what will no doubt be a turbulent few months as Brexit unfolds.
Why White Oak UK?
White Oak UK have developed an extensive offering designed to directly support the Construction industry, built on the back of more than 30 years’ experience in supporting the specific needs of the sector.
To find out more about any of these products call us on 0333 331 7065 or arrange a call back to talk through your options with our team.