Cirrus give hope to companies in financial difficulty

Following claims that companies will collapse under financial pressures, Cirrus Construction Finance services offer many tales of hope.

A Director at Henderson Insurance Brokers recently predicted a bleak future for many construction firms, fearing they would succumb to challenges still presenting themselves since the recession.

The claim was made by Jonathan Willett, Director of a company that operates out of 12 offices throughout the UK.

And he believes that the low price of work coupled with the materials getting back to the costs they were at before the recession means that some companies will continue to struggle.

As has been seen this year already, many have fallen into difficulties, and Henderson Insurance Brokers’ company UK Credit, has seen £1M of claims processed through clients who have suffered from the collapse of their businesses.

Those who have suffered notably include Muirfield Contracts, GB Building Solutions, Southdale Construction Group and Anglo Holt Construction, and Jonathan explained the reasons for his claim.

He said: “During the depths of the recession, as in all industries, many construction companies had to price work low enough to win contracts and stay afloat.

“As the industry recovers, many labour and material costs are returning to almost pre-recession costs, meaning that work priced then just doesn’t allow enough margin to cover these costs.

“While this isn’t the sole reason for the troubles we have been seeing lately, it does suggest that we have not seen the end of it yet.”

While words like this can cause concern around the industry, there are companies out there whose purpose is to ensure that companies emerge from any difficulties.

One of these such companies is Cirrus Construction Finance – the Sheffield-based company committed to providing funding solutions for those within the industry that need the support.

Having dealt with a whole host of construction clients and their financial matters, Cirrus can manage business finances, chase client payments and deal with disputes, all the while maintaining a healthy cash flow.

Services include restructuring finance, key debtor finance, project and contract finance and – importantly for those struggling in the way that Jonathan explains above – Cirrus Rescue Finance.

This supports viable businesses by helping with any restructuring, liaising with any insolvency practitioner to ensure that said restructuring takes place, which all ultimately leads to giving the business its greatest chance of success in the future.

With expert help such as this available, it means that companies who are facing difficult times can look forward with optimism.

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