CONSTRUCTION FIRMS – Coronavirus Debt Exposure Help
ADVICE FOR CONSTRUCTION FIRMS
As both the UK and Irish Governments release funds and loans for the Construction industry to avoid business closure and loss of jobs during the Coronavirus crisis, Bell & Company have seen Construction Firm Debt Advice enquiries and “chatter” increase recently.
The pandemic has meant that many firms have had to stop construction projects. With the prospect of reopening sites and fulfilling projects, the fear of supply chains and cash flow issues worry the longevity of many firms.
Government shut down of whole sectors of the economy is having a profound impact, especially those within the construction industry.
THE PROBLEM: CASH FLOW TIME BOMB
With output expected to drop by 70% in Q.2, the lack of work billed could lead to a decline of circa £30 billion in cash feeding through the supply chain by Q.3, a recent forecast has reported.
As sites restart, firms could then face a wait of around 60 days to receive payment on new work.
Cash Flow Issues are a Main Trigger of Insolvency in Construction Companies.
Construction is one of a handful of industries that typically experiences a lag in times of economic recovery. This is due to the inherent delay between the initial upturn in confidence in the wider economy, and the re-opening or start of construction projects. Especially now, with the prospect of phased social distancing policies being introduced. Capacity will impact on the viability of any firm.
Is your firm experiencing any of the below debt-related issues?
- Trade Creditors
- Personal Guarantee Exposure
If you answered yes to any of these, then having a chat with an Independent Professional Insolvency Advisor can help.
If your business was experiencing a pre-existing problem. It is very likely the viability of the business is uncertain. You need the best professional advice as soon as possible.
Formal Insolvency in most cases is not the best route. Depending on your personal exposure and a more pragmatic approach in negotiating with the creditors should be considered.
EXPERTS IN CONSTRUCTION FIRM DEBT ADVICE.
Our team has a real depth of legal and financial experience in dealing with Personal Guarantees, and Business Debts in all industries, so we can mediate effectively with your creditors with the aim to reach the best possible outcome for you.
As a director of a business operating within construction, it’s vital to seek professional advice at any sign of financial struggle. We can provide the correct expertise – contact us today on 0330 159 5820 or [email protected]