Flexible finance is a crucial element of doing business for many construction firms delivering much-needed homes, buildings and infrastructure. Aldermore’s range of bespoke products can help
With the government committed to the building of hundreds of thousands of new homes every year, and plenty of activity in the commercial sector too, there is a strong underlying future for the UK construction industry.
However, this doesn’t mean that doing business is always going to be easy. Very recently, services giant Interserve fell into administration, following on from the collapse of Carillion last year. Such events can have knock-on effects across the supply chain. It leads to a greater cautiousness amongst even the big players and a side-effect of this can be a slowing down of payments or lengthening of terms.
Keeping the cash flowing is always a prime concern for smaller construction businesses. Materials still have to be purchased to get the job done, and staff and sub-contractors have to be paid.
That is why access to flexible finance is important for many small firms.
A great example of flexible finance, where Aldermore has been able to help, is Taybridge Construction. Established in 2015, Taybridge is now one of the North West’s leading building and civil engineering contractors, specialising in reinforced concrete foundations, roads and drainage infrastructure, and hard landscaping.
Business levels are strong but the firm appreciates the need for a construction finance facility to help it manage cash flow. Taybridge had used the same lender since it started up four years ago – but when that lender announced it was increasing its rates, this prompted the company to look around to see what else was available. They chose Aldermore.
Stephen Taylor, director at Taybridge, explains: “The rates offered by the lender we had been with for years seemed to keep on increasing. We looked around and Aldermore’s rates were the most competitive and the level of service was right for us. The funding process is far smoother than with our previous lender. It helps us manage day-to-day expenses and also do things like invest in new equipment and provide any training staff may need. We now have the support and financial confidence we need to plan for the long term.”
As Stephen indicates, the decision was by no means just about price – service and flexibility are key concerns too. Stephen has been impressed by the service the company has been provided with: “Our relationship manager is fantastic. Her relationship with Taybridge is strong and she’s spoken with us on a daily basis. It really helps when someone has such a good knowledge and understanding of what we are trying to do.”
At Aldermore, we have developed a bespoke range of Finance products that help small firms keep the liquidity flowing. This includes Construction Finance, where firms can access up to 70% of the value of invoices as soon as they have issued them. We have a dedicated Construction Finance team who work closely with customers and get to know their businesses.
Andrew Dixon, commercial director at Aldermore, said: “Supporting the construction sector has become one of Aldermore’s real specialisms. We work with many construction firms across the country, helping them find the right financial solutions for them. It’s a sector we’re committed to working with.”
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Please note: this is a commercial profile.