The construction industry accounts for 25% of all business insolvencies in Australia, an issue often resulting from low margins and difficulty sourcing funds. Small businesses don’t usually receive payment until the project is complete, but employees expect a regular salary, materials can quickly go over budget, and timeframes are regularly pushed back. Commercial construction loans are the most popular way to finance a development; however, it is not the only option. There are many other non-traditional ways to source funding, including equipment financing, unsecured business loans, Australian government agencies, or listing on the Australian Stock Exchange.
BDO’s National Leader of Real Estate & Construction, Andres Reith, brings together BDO Business Restructuring Partner, Duncan Clubb, and a successfully funded construction firm to discuss funding for your construction business, now and in the future. Preparing your business for success has never been as important as it is today, and the impacts of COVID-19 and economic uncertainty have only made these concerns more prevalent.
They will discuss:
- Financial health in the construction industry
- Sourcing funds in times of trouble
- Non-traditional sources of funding available
- Advantages and disadvantages of international funds
Find more in the series:
Looking Ahead at Real Estate & Construction in 2022