It is a brave person that mentions Construction and Covid in the same sentence. I mentioned it once, but I think I got away with it!
Despite being one of those sectors which was technically allowed to continue during lockdown, the reality was, by and large, they buttoned down the hatches and hid. Of course, it didn’t help that raw materials were very hard to come by. It was not a pretty sight to see flocks of plasterers fighting over the last bag of plaster in Wickes car park! If you didn’t know that a group of plasterers is known as a flock, well you do now!
Anyway, I digress. Construction businesses found it very tough during lockdown because the supply chain was not functioning, and the good old financiers were equally flocking to the hills because a man in a grey suit told them that if it says ‘construction sector’ on the packet, then it is high risk.
To 4Syte it is more about understanding the risk, assessing the contracts, ensuring the business processes are sound, the business is on a decent financial footing and setting the advance rate at a realistic rate which provides the right level of funding but doesn’t overexpose the risk. Some things are really simple if you say them quickly!
The credit insurers (and I am generalising here) have been cutting limits for most companies involved in Construction – good and bad – also making it difficult for sub-contractors to trade and, more importantly, be funded on their supply contracts. Despite being promised assistance by the Government to support trade credit, as I write this has still not come in to force, contrary to the rest of Europe which has had cover for some months now. I do not like to be critical of the Government because it has done a huge amount to support business, but I am not sure they understand the intrinsic link between credit insurance and successful trade and the financing of that trade.
Despite everything going on during the Coronavirus pandemic, 4Syte Construction Finance has continued to provide funding to SMEs to finance their contractual and supply obligations. Whilst some lenders have closed for business, at 4Syte Construction Finance it is business as usual with an added dash of pragmatism!
4Syte Construction Finance continues to be active offering facilities up to £1.5 million. 4Syte looks at each deal on its own merit, applying a common-sense underwriting approach to each new proposal. We understand contractual finance and provide a sensible and competitive facility to our clients.
4Syte Construction Finance has approved a number of new facilities during the pandemic. A £700,000 facility for a painting and decorating company; £200,000 to a water services business; £350,000 to a fire alarm and call systems company; £100,000 to a steel fabrication business; £200,000 to a commercial partitioning business.
So, as you can see, there are a diverse range of businesses which we are delighted to support.
Get In Touch
At 4Syte we strive to be different from the typical finance providers. We look beyond “here and now” and focus on what we do best, by providing Financial Peace of Mind.
If you would like to speak to us about any of our services, then please do not hesitate to contact us. Our team of experts will be more than happy to talk to you and answer any questions you might have.