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Contractors

Strong finances and a healthy cash flow are crucial for businesses working within the construction industry. In an industry where projects can be long-lasting and payments can be unpredictable, it can be difficult to manage your finances in order to complete jobs effectively.

In the construction industry, each and every job is unique, and it’s not always possible to predict when the money from a particular project will enter your account.
Financing your business growth.
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Financing your business growth.
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When faced with unpaid billing, contractors can face significant problems. Late payments from one customer could leave you unable to complete projects for another. Paying staff, suppliers, and sub-contractors can also be a challenge when you’re waiting for the money to enter your account.

Contractors

If you find yourself in a situation where more money is going out than coming in, it’s important to identify issues as soon as possible and act upon them before they spiral out of control.

By adopting simple cash flow management strategies, and closely monitoring profits and expenditure, it is possible to minimise the likelihood of serious problems arising.

Strong finances and a healthy cash flow are crucial for construction companies. In an industry where projects can be long-lasting and payments can be unpredictable, it can be difficult to manage your finances in order to complete jobs effectively.

In the construction industry, each and every job is unique, and it’s not always possible to predict when the money from a particular project will enter your account.

When faced with unpaid billing, contractors can face significant problems. Late payments from one customer could leave you unable to complete projects for another. Paying staff, suppliers, and sub-contractors can also be a challenge when you’re waiting for the money to enter your account.

If you find yourself in a situation where more money is going out than coming in, it’s important to identify issues as soon as possible and act upon them before they spiral out of control.

By adopting simple cash flow management strategies, and closely monitoring profits and expenditure, it is possible to minimise the likelihood of serious problems arising.

  • Are you waiting longer than expected to receive payments?
  • Are you paying subcontractors or suppliers long before you receive payment from project owners?
  • Are you using available cash to finance equipment instead of exploring leasing or financing alternatives?


All of the above can hinder cash flow by diverting necessary funds away from where you need it most.

If you are facing a cash flow crisis, there are steps you can take:

  • Understand the billing process with your customers and ensure that these are being adhered to
  • Conduct a cash flow forecast and assess it frequently


Efficient cash flow planning can help you to better manage your budget, effectively control your capital, increase revenue and boost your profits.

Sometimes, in order to pay your suppliers and sub-contractors on time, you may find that you need a helping hand to keep cash flowing while waiting for the money that you’re owed.

At Aldermore we understand the struggles that you can face as a contractor, and so we’ve developed a Construction Finance offering to help you to access the cash that you need quickly.

Construction Finance offers you fast access to working capital advanced against your uncertified applications for payment or staged invoices. You’ll no longer have to wait for payments from customers before you can fund the day-to-day running of your business, and pay your own staff and suppliers.

  • Business
  • Invoice Finance
  • SME
  • Construction

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