The road to finance has undergone a transformation in recent years. Bank loans are no longer the presumed preference, with alternative finance platforms, such as crowdfunding, rising in popularity. These options are not always fair on the business owner, however, and many have awaited government intervention.
The government has not always been successful in their interactions with the construction industry. Contractors’ financial struggles have been predominantly been caused by late payment, but the government’s Prompt Payment Code did little to relieve the strain.
This new collaboration with Barclays could bring more success, with loans ranging from £5 million to a maximum ceiling of potentially £100 million. This could shake-up the industry, providing a lucrative opportunity to firms who have the necessary experience and track record.
Most excitedly, this new fund will focus on small and medium-sized businesses. These enterprises have historically struggled with low demand and competed desperately with their larger counterparts. Housing Secretary Rt Hon James Brokenshire called the fund an “important step” in giving smaller builders access to finance and getting expansion projects off the ground.
Innovation should be the priority of all businesses and business sectors, particularly as the Brexit deadline edges ever closer. The reality of achieving this has always been a bit more complex for small businesses. This new housing fund, however, could be an exciting next step for the country’s SMEs, giving our international rivals something to talk about.