Financing projects can be a real source of stress for construction industry businesses. It’s not uncommon for construction businesses to have to delay payments to suppliers while you wait for your customer to pay you.

Worrying what will happen if a customer doesn’t pay you in time is not a comfortable feeling. Not knowing how much of the money in your bank account you need to finance a project can lead to serious problems if you take too much money out of the business. It’s one of the main reasons why construction industry companies struggle financially or go bust.

Prevail can help you to successfully finance all your projects.

How can Prevail help?

With our support, you can overcome the challenge of financing projects.

  • With the right financial analysis, you can successfully finance every project without stress. You’ll never find yourself in the position of not being able to pay your VAT bill, suppliers or – worse – wage bill.
  • The starting point is to prepare a cash flow forecast for your project. The company should also have a cash flow forecast prepared to recognise regular monthly spending and attain a full overview.
  • This cash flow schedule enables you to see the preliminary costs upfront. You can use it to calculate and justify a deposit or upfront payment for the project. It also gives you a basis on which to negotiate much more effectively – you can really only ensure profitable negotiation when you have a clear view of the costs involved.
  • High-level planning involves the project cost estimation and the gross profit margin. By calculating a project’s price, gross profit and duration, you can make a good estimation of your margin of safety. Calculating the margin of safety is vital when deciding whether or not to take on a job.
  • As your project progresses you must maintain this oversight. To help you do this, we will help you tidy up your “now”. We will tidy up your accounts, put the right systems in place and prepare the right processes for your bookkeeping. This way, you can keep a close eye on the management information you need.
  • Controlling costs in real time enables you to see how much money is spent, compare that against your forecast and spot any delays. Red flags are always spotted in real time – so you can take remedial action quickly.
  • In construction, the unexpected happens all the time. The higher your margin of safety, the better the project. The unexpected can be absorbed or passed on because you know immediately whether or not you can cover the project costs. You always have up-to-date oversight of how much profit each project will generate.
  • At the same time as gaining this essential oversight to maximise your profitability and stabilise the financing of your projects, the systems and processes we help you to put in place will save you hours and hours of admin time, reducing paperwork and minimising stress for you.

Get in touch!

We can help you overcome challenges commonly faced by construction industry businesses, including:

For specific understanding about how we can help you address these challenges, please visit the relevant page.

Alternatively, you can contact our team to discuss the challenges you are facing within your own operation.

Call us on: 01706 550 825