The Australian construction industry generates over $360 billion in revenue, producing around 9% of the gross domestic product (GDP) and has a projected annual growth rate of 2.4% over the next five years. In New Zealand too, the construction industry is experiencing significant growth, contributing $15.8 billion to the GDP last year and employing over 170 thousand people.
With extensive infrastructure investment planned for the coming years, contracts to work on large national, as well as smaller-scale civil and construction projects present SMEs with compelling opportunities for growth.
The obstacle faced by many businesses however, is having the cash flow in place to sustain existing activity as well as fund growth opportunities. For smaller operators, tendering for large-scale civil and construction contracts, cash flow can make or break the bid. For small operators tendering for large-scale civil and construction contracts, working with milestone payments or progress claims, healthy cash flow can be the difference.
As a smaller supplier working with some very large players, we quickly found ourselves in the backbreaking position of having a labour force and equipment in place for a project, but then waiting between forty-five days to seventy-five days for our invoices to be paid.
Extreme cash flow stress led to a review of funding options with Apricity Invoice Finance providing a simple solution that we can use as and when we need.
We now have the ability to run two or three large-scale projects concurrently and despite carrying significant expenses (including a workforce of hundreds of employees) we are confident that all our obligations will be met.