Originally written by fundingoptions on Small Business
Despite the pandemic, the construction industry is growing at its fastest rate since 2014, according to the latest IHS Markit/CIPS Construction Purchasing Managers’ Index (PMI).
This trend is set to continue. Building works for both residential and commercial properties have continued throughout the last 12 months and more are in the pipeline as demand rises.
However, this surge in demand for construction services, alongside factors such as increased shipping costs, has left construction materials, including cement, some electrical components, timber, steel and paints, in short supply.
The Federation of Master Builders says this means some building companies may have to delay projects and others could close entirely.
Fortunately, there are lots of construction finance options out there to help affected firms manage their cash flow and pay suppliers and staff during this busy period.
What is construction finance?
Construction finance is a type of business finance designed for building contractors, sub-contractors and other companies operating in the construction industry.
Lack of funds can lead to delays which ripple down the supply chain. Construction finance provides businesses with the capital they need in order to fund their building projects.
Think of it as a kind of funding bridge: a solution to cover costs