Construction Finance Market Research Findings
We have conducted a piece of market research, within the construction sector, but I thought it would be helpful to summarise the key findings of our construction sector research in this article.
Funding Against Uncertified Applications For Payment
Amongst the construction sector busnesses that we interviewed, we found that:
- 75% raised applications for payment
- 25% raised sales invoices
A tendency towards using applications rather than invoices, but both of these methods of operation can be eligible for funding before payment is received.
Getting Paid Immediately You Raise Applications
Of the 75% that raised applications:
- 85% said they would benefit from getting paid when they raise the application,
Current Usage Of Funding Against Applications / Invoices In The Sector
Over the whole sample:
- 65% said they needed to get more funding over the coming year.
- 19% had received a quote for construction finance.
- 2% actually used construction finance.
The reasons for the low take up of the product were as follows:
Clearly many more construction sector businesses could benefit from getting funding against either applicaitons for payment or sales invoices. Low product awareness is the key issue to increasing uptake. The number of providers offering these services has grown in recent years, so there are are more options available than ever before. The challenge rmains raising market awareness of this little known option for funding construction projects.
Source: UK Factoring & Invoice Discounting Market Research Summary - Part 3 - 14th May 2013 (100 construction sector businesses surveyed).