The new Labour Government has pledged to ‘Get Britain Building’ by reforming the planning system and launching national infrastructure projects.
While leaders in the construction industry have generally welcomed these plans, the Federation of Master Builders (FMB) has stressed the importance of a long-term training and skills strategy to tackle the ongoing skills crisis in the sector.
Planning for growth
Businesses across the construction sector have faced rising costs for both materials and labour in recent years, alongside increasingly complex building regulations such as the Future Home Standard.
To capitalise on future growth opportunities, it may be worth reviewing your current plans and refining your strategy.
Growth requires working capital. If you have faced cash flow challenges or have recently had lower credit scores, we can help you identify ways to strengthen these areas.
Best practice preparation
Presenting a compelling case to lenders is essential for securing the most appropriate financing options. We can assist you in determining how much funding you require by preparing detailed financial projections and exploring different scenarios.
Successful finance applications often demonstrate robust management information to track key performance indicators and assumptions, including:
- Supplier prices, lead times, and stock control
- Rates of pay for skilled and unskilled labour
- Impact of retentions on cash flow
- Hire of machinery and equipment
- Costs relating to health & safety, insurance, and training
New funding products for construction
With the increasing use of Open Banking, lenders can make quicker and more accurate decisions when assessing funding applications.
As small businesses typically file limited information at Companies House, providing access to real-time bank data helps lenders better understand your cash flows, including balances and transactions.
Lenders cannot access this information without your permission. It remains highly secure, with third-party lenders only having read-only access. You can withdraw permission at any time, and the agreement is renewed every 90 days, so access is never permanent.
Open Banking can accelerate the application process and may reduce the need for additional security measures, such as personal guarantees.
When historical accounts are not as strong, sharing up-to-date financial data can make a significant difference. As more innovative lenders adopt new credit assessment methods, the use of Open Banking is likely to continue to grow.
We’re here to help
For more information about any of these areas, please contact Sarah Hartshorn.
