In October last year, Bibby Financial Services selected a sample of 200 small construction businesses to take part in a study. The resulting report, Planning for Growth, offers unique and detailed insight into opportunities, work levels, and challenges facing these smaller construction firms in 2015 and beyond.
Going further than the report, we recorded a video that encapsulates many of the key findings of the study. The video, which can be seen below, goes onto highlight the state of play in the UK construction industry.
Pressure on cashflow
49% of the firms we surveyed said they are busier than they have been in the past and this is a very positive statistic. But while firms are busier and had on average 17 weeks’ worth of work in the pipeline, waiting times on payment can be 45 days and longer. This can put very real pressure real on businesses’ cashflow.
It’s not surprising that there are concerns about late payments, the average construction firm has had to write off in excess of £21,500 over the last 3 years. The report also highlighted that 63% of business owner’s end up chasing the debts themselves.
Funding for construction
37% of small businesses use a bank overdraft, but only 4% are currently using the services of an invoice finance business. Invoice finance has many advantages for constructions firms; the facility can grow as the business grows, and invoice finance has the added advantage of professionals handling any debt collection duties, allowing owners to focus on growing the business further.
For more details on the report please watch Bibby Financial Services’ Managing Director for Construction Finance, Helen Wheeler, in the video below where she talks about the findings. You can also download the detailed Planning for Growth report.
BIBBY FINANCIAL SERVICES
As the UK’s leading independent invoice finance specialist and a trusted provider of cashflow funding to over 7,000 businesses, Bibby Financial Services provides a range of finance solutions for companies in over 300 industry sectors.
For more information about Bibby Financial Services’ cashflow solutions, visit: www.bibbyfinancialservices.com or call 0800 91 95 92.