- 08 Aug
Construction Equipment Sales Index Shows Continued Growth
Another positive report today, showing growth in the number of sales of construction and earthmoving machines during Q2 2018. According to a report from theconstructionindex, the second half of 2018 showed 3.8% growth in the number of sale, compared with the same period in 2017.
The first half of this year showed 5% growth against the same period in 2017. Although value is not reported, sales of crawler excavators (over 10 tonnes) showed the strongest growth, followed by telehandlers and mini/midi excavators (below 10 tonnes).
Debt Funding For Construction Companies
Some positive news for the construction sector that supports confidence in future growth for the sector. We have seen some recent enquiries for funding connected to the construction sector so our own experience reflects more companies within the sector turning to sources of growth finance.
Indeed in a recent meeting with one of our funding partners, they confirmed that they are now able to funding construction sector debt, which will deliver further choice to our customers. There are a growing number of specialist lenders that are able to support the sector, which several funders moving into the sector over recent years. There has also bee product innovation and development that is delivering additional flexibility of funding to customer.
This type of funding against either unpaid sales invoices or applications for payment (either certified or uncertified which are used by approximately three quarters of companies in the sector) means that companies don't need to wait to be paid by customers before they can use the cash tied up in customer debts. This injects liquidity into the business and enables growth. This method of raising capital for the sector is little known, 45% of potential users have never heard of the service.
Funding Plant & Machinery Purchases
In addition to funding against sales transactions for working capital purposes, there are also plenty of options to finance the purchase of plant and machinery through options such as leasing or hire purchase. These can spread the cost of an equipment purchase over a long period of time, allowing the acquisition of a capital item via small regular payments instead of a large capital outlay.
Please contact Sean on 03330 113622 if you need help funding construction sector invoices, or applications for payment, or finance to purchase machinery or plant.