Turnovers increase as construction firms go for growth
– Turnovers increase by 25% of those seeking cashflow finance
New statistics from Nucleus Commercial Finance, which specialises in finance for the construction industry, reveal signs of a further strengthening of the construction sector and a return to increased confidence.
Not only did Nucleus see the volume of deals triple in the last 12 months, but more importantly it saw the turnovers of clients within its construction portfolio increase by an average of 25%, allowing more cash for investment to be released.
Nucleus provides invoice finance solutions to construction firms, enabling cash to be released against the value of a key asset, specifically the sales ledger. As an invoice is generated, Nucleus provides up to 85% of the invoice value immediately, and the balance once the amount is settled.
Chirag Shah, chief executive, Nucleus Commercial Finance, said that the more invoices are created, the more cash becomes available: “Invoice Finance especially rewards those businesses who need cash to grow and the higher the turnover, the greater the availability and volume of cash to invest.”
Chirag said that construction firms are clearly enjoying a period of sustained recovery: “An increase in turnover demonstrates a clear increase in confidence and an increased confidence in bidding for new contracts. It is one of the real success stories of a recovering economy; success is breeding further success.”
Nucleus reports demand for cash from all elements of the construction industry and the construction supply chain, and especially in ‘pure’ construction – namely scaffolders, groundworks providers, plasterers, brick makers etc.
More than 60% of deals referred to the firm in 2014 were construction related, of which 27% were ‘pure’ construction, 15% were environmental services businesses, and 12 were for firms who specialised in refurbishment. A further 10% of deals related to M&E contractors.
Nucleus provides funding against applications for a range of construction businesses throughout the supply chain. It works closely with a team of quantity surveyors to ensure informed funding decisions are made within 24 hours of receiving the applications.
