The ultimate collapse of construction giant Carillion has come as no great surprise following the number of profit warnings issued during the past twelve months. What is surprising is the aggregate total of liabilities, compared to what few assets there are.
As the government faces the momentous challenge of restoring public sector contracts for ongoing and future developments such as HS2; construction company owners are left sat around the country, reeling in the aftermath of the collapse.
This failure has undoubtedly caused cash flow issues for a large number of contractors in the Carillion supply chain. While some may be relieved that they didn’t directly work for Carillion, they may be inadvertently affected by joint ventures they weren’t aware of and are now bearing the brunt via their own partners suffering from the estimated £1billion deficit.
The speed of the decline and appointment of liquidators to Carillion has possibly caught a number of suppliers by surprise. Most of whom may well not have a contingency plan in place to plug this funding gap.
There are things you can do to help if you are worried you may be affected by the “big squeeze”:
- Review your current business debtors. If you have the opportunity to request payments sooner then do so.
- If you are owed any retentions on existing projects, chase them.
- Take advice…..
How can we help?
If you have outstanding invoices, we can realise the cash held in these for you. Either on a one off basis, single invoice or single debtor or if you have a ledger full of debt, we can fund more. We can create bespoke funding packages tailored around your business whether that be via:
- applications for payment, certified or uncertified
- staged payments
- single invoice
- single contract
- whole of ledger
Here at Goodman Corporate Finance, we have access to over 200 lenders providing a wide and diverse spread of funding options. We are extremely well qualified and experienced in reacting to immediate demands for short to medium term funding. Should you therefore, be experiencing any funding issues as a result of Carillion’s collapse, then please contact us immediately.
Equally, in the unlikely and unfortunate event that this collapse is placing a more significant pressure on your finances, then through our associated company, Business Sustainability Limited, we can offer immediate, confidential advice on turnaround, refinancing and other restructuring options.
Please do get in touch if you would like to discuss anything.