Many contractors deliver work over an extended period, and submit billing at stages throughout the life of often lengthy construction projects. For contractors this creates cash flow pressures as they have to pay their own suppliers and staff before receiving payment from their customers. Aldermore’s Construction Finance is a working capital solution based on the value of their customer billing to provide funding throughout the life of a contract.
The construction industry is a key sector of the UK economy employing around 3 million people. Access to finance is vital for construction firms to enable them to operate and grow as the recovery in the sector continues. With research showing that construction firms are more likely to be turned down when applying for overdrafts or loans than businesses in other sectors and this new product is aimed at meeting their working capital needs. It is the first of a number of planned SME funding solutions to be developed by Aldermore’s new Specialist Finance team.
Andrew Dixon, Director of Specialist Finance at Aldermore, said: “We know that many contractors struggle to find working capital to fund their contracts and extended payment terms are a problem in the industry. Our facilities provide access to funds for the period before businesses receive payment which is especially important in the construction industry.
“Aldermore is committed to supporting UK businesses and I am confident that our new finance facility, designed specifically for the construction sector, will prove to be a popular alternative to traditional funding.”
Further information about Aldermore’s Construction Finance is available at www.aldermore.co.uk/business/invoice-finance/construction-finance/.
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