Master Builder magazine: April-May 2025

BIBBY FINANCIAL SERVICES

Proud to work in partnership Our partnership with the FMB enables us to extend the support we offer to the construction sector. We already have clients who are FMB members. We also work with a trusted network of partners to provide other services critical to managing your business; for example, support with contracts.

How we help businesses

Multi-layered solution: We supported a major housebuilder in the North East with a £1.5 million

Looking for further guidance? For more information about how BFS can support your business, scan provides the flexibility needed to support immediate needs and future scalability. As pipelines build, businesses could find themselves in an overtrading trap if they cannot raise the working capital to deliver projects. Our Construction Invoice Finance solution releases Speed of funding: A 50-year-old business, previously funded by a £75,000 bank overdraft, received notice that its facility was being withdrawn. The business researched alternative providers but was considered unsuitable by some due to the staged nature of its invoicing. Our construction facility funds contractual debt, providing an ideal solution for the business, which received a formal offer from us within four days of our meeting.

Flexibility and reliability: We are working with an established electrical contractor that has been in business since 2001 and was funded by another provider for several years. The other provider withdrew from the market and when they sought funding from their existing bank, they were declined.

asset finance facility, complementing its £6 million of agreed

invoice finance funding. The business used the funding to renew its fleet, including the acquisition of five Scania trucks with tipper bodies, which were financed on hire purchase over

Our knowledge and appetite to support

a 60-month term and crucial to delivering its committed projects.

the sector allowed us to deliver a solution where others couldn’t.

money tied up in applications for payment. Unlike some other providers, we fund certified and uncertified payment applications, enabling you to receive up to 70 per cent of the value of those applications within 24 hours of logging them. You are using money you have already earned, rather than taking on additional debt, which improves your cash flow. As you grow, the funding can grow with you. We can also support you with financing new equipment – or re-financing existing equipment – through our Asset Finance Solutions.

asked said it was more difficult to access finance now than six months ago. This was the highest percentage of any sector we researched. We have seen examples of this with new clients – where their existing facilities have been withdrawn or they’re struggling to secure funding due to the staged nature of their invoicing. External funding can provide a boost to cash flow and enable growth. More than one in three of the businesses we asked said they don’t have the cash flow they need to grow, which is a barrier for them and the economy. When choosing a source of funding it’s key to ensure that it

payment can delay receipt of payment, which has an impact on cash flow. Over 50 percent of those we asked said late or non- payment of invoices was worse than ever. As many as 35 per cent have suffered a bad debt in the last 12 months, which was the highest percentage within all of the sectors we researched. Future-focused finance The sector’s resilience and capability to capitalise on

opportunities will partly depend on its ability to

the QR code or call us on 08081 631 647

leverage funding effectively. More than half (51 per cent) of construction businesses we

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