Latest News | 30th November 2016

5 tips for housebuilders to maintain a healthy cash flow

With labour and material costs rising resulting in lower margins, there are significant financial challenges ahead for UK housebuilders. Now more than ever it is important to have a healthy cash flow. So here are our top tips for you to consider moving forward in the future:

  • Use bookkeeping and a comprehensive accounting system, this will help give you a precise idea of what income and expenses are expected in the future. For more information go to Lloyds Bank Business Toolbox.
  • Spreading costs when buying materials will leave you with more cash for operations. Negotiate prices when buying large quantities and get quotes from different suppliers as well as asking for a discount.
  • Labour costs: retaining staff is cheaper than hiring new staff especially with rising construction skill shortages. We also recommend saving money by investing in technology to automate repetitive tasks.
  • House builders receive a significant amount of invoices. Switching to an electronic, integrated invoicing system will save you important funds over time, money that could go back into your business.
  • Staff training: In the housebuilding industry 85% of the cash comes from work in progress, which means performance depends on the project manager’s cash flow management.

Are you looking to grow? We partner with small housebuilders and developers who are developing on average between 5-175 units per year. For more information visit our criteria page.

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A key part of how we seek to deliver our purpose is to strive to create a fully inclusive environment for all our colleagues, partnerships and communities, one that is truly representative of modern-day Britain. Quite simply, a more inclusive society is a more prosperous society, and a diverse business is a better business. That means that we also speak up and act when something feels wrong – for example, we know it’s not enough to simply not be racist, we need to find ways where can be actively anti-racist by providing allyship to our partners and colleagues. We’re an anti-racist organisation and do not tolerate hate. We will take action against discrimination and inappropriate behaviour, whether racist, sexist, homophobic, transphobic or ableist, regardless of whether this happens in our offices, over the phone or online on our social media channels. Quite simply, we believe in doing the right the thing. We know we won’t always get things right ourselves, but we are committed to always striving to do better, for our colleagues, partners and communities.

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