Do you have a company in the construction industry? Then you might have noticed that the construction sector has been experiencing an upward trend in production for the fifth year in a row. That means it’s important to give your liquidity some attention, as more construction means a rise in salary costs and financing the building materials. One solution that is often used to decrease pressure on liquidity in a rising market is factoring. Togather has the solution to this: factoring 2.0! Curious about what this could mean for your construction company?
Shortage of staff
Many construction projects experience a delay because of a shortage of staff. This is because during the crisis between 2010 and 2014 many companies went bankrupt, and many construction workers re-educated themselves. Now that the construction industry has been growing again for the past couple of years, there is a new need for personnel. Finding qualified staff for construction work is difficult, so freelancers are being employed, who obviously want to see their invoices paid on time. Another consequence of this that is causing problems: freelancers have raised their prices because there is a shortage in the market which makes it difficult for the construction company when they take these more expensive freelancers on to do jobs that were negotiated in the past. Because more costs and equal gains means less revenue.
Not enough working capital available
A different challenge is that you have to pay staff salaries on time, of course, yet you have to wait for your client’s payment. Many construction companies face this problem. You allow for paying your staff on time, while you then have to wait for the money from your debtors.
This could mean that there won’t always be enough working capital available. Not enough working capital means that no extra staff can be hired as there is not enough money to pay them. You’re really stuck while you could grow. Can you relate to this?
Togather has the solution. Don’t worry about paying your creditors’ invoices and make your financial problems disappear. Leave those problems to us so that you and your construction company can fully focus on looking for qualified personnel and producing beautiful and profitable construction projects. We will make sure that there is working capital available to hire this new personnel and realise the new construction projects. We can only see the advantages in this.
Do you want to focus on construction projects and not on your financial problems?
Then factoring 2.0 could mean the following to you:
· No more waiting for your debtor’s payment (also internationally)
· No risk of bankruptcy or non-payment
· Room for investment to grow because we take over your invoices
· No more financial problems because of the liquidity we provide
· No administrative fuss to worry about
Because Togather takes over your invoices and provides working capital, Togather reacts to the current financial demands of your construction company. This means that you don’t have to worry if there is enough working capital available while taking on new projects.
With factoring 2.0 by Togather you can be sure the invoice is paid. You don’t have to worry about an uncertain cash flow. You can focus on what you really want to be focusing on: the growth of your company. Leave the financial fuss to us and focus on the future!