My HGH
My HGH
The new Labour Government has pledged to “Get Britain Building” by implementing reforms to the planning system and initiating national infrastructure projects. While construction industry leaders have broadly welcomed these reforms, the Federation of Master Builders (FMB) emphasises the need for a robust, long-term training and skills development plan to address the sector’s ongoing skills crisis.
Planning for Growth
Challenges in the Construction Sector
Businesses in the construction industry have faced rising costs for materials and labour, compounded by new building regulations like the Future Homes Standard. To capitalise on future growth opportunities, it may be beneficial to reassess your current strategies and consider a strategic reset.
Importance of Working Capital
Effective growth requires adequate working capital. If your business has been struggling with cash flow issues or low credit scores recently, exploring ways to improve these financial metrics could be essential.
Best Practices for Financial Preparation
Optimise Lending Applications: To secure the most favourable loan terms, present your case to lenders as compellingly as possible.
Develop Financial Projections: We can assist in creating detailed financial projections with multiple scenarios to determine the necessary financing.
Showcase Management Information: Successful loan applications often feature regular management reports tracking key performance indicators, such as:
- Supplier prices, lead times, and stock control
- Wage rates for skilled versus unskilled labour
- Impact of retentions on cash flow
- Equipment and machinery hire costs
- Health & Safety, insurance, and training expenses
Leveraging New Funding Products for Construction
- The arrival of “Open Banking” has revolutionised lending by enabling quicker and more accurate decision-making. This system allows lenders to access detailed activity from your main bank account, which can provide a clearer picture of your business’s cash flow, including balances and transactions.
- Lenders require your permission to access this data, which is highly secure. 3rd party lenders only have read-only access, and you can revoke permission at any time. The agreement is refreshed every 90 days, ensuring it remains temporary.
- Open Banking can speed up the application process and may reduce the need for additional security measures, such as personal guarantees. For businesses with weak historical financial accounts, providing up-to-date data can significantly strengthen loan applications.
- As new lenders enter the market, innovative credit assessments and the continued adoption of Open Banking are expected to grow.
We’re Here to Help
For more information on navigating these opportunities and challenges, please contact us on 01904 655202, or email enquiries@hghyork.co.uk. Take a look at our services and let us help you make the most of the “Get Britain Building” initiative and support your business’s growth.
