Search

Construction company bosses pump £584m into their own firms to keep them afloat

PUBLISHED: 08:29 03 April 2018 | UPDATED: 11:19 03 April 2018

Data from RICS shows that the construction industry in the East grew in the first quarter of 2018. Picture: IPG Gutenberg UK/Getty Images

Data from RICS shows that the construction industry in the East grew in the first quarter of 2018. Picture: IPG Gutenberg UK/Getty Images

IPGGutenbergUKLtd

The amount of money loaned by construction company directors to their own businesses to support them has risen by a third in the past year, new figures show.

An analysis of information from 180,000 firms shows almost £584m was loaned last year – up from £408m in the previous 12 months.

The study said there were fears that smaller construction business owners, who represent the vast majority of these loans, may be forced to further increase lending following the collapse of Carillion and subsequent disruption in the industry.

Many businesses that were subcontractors for Carillion will not be paid for their work, increasing the likelihood of those businesses’ directors having to cover cashflow shortages, it was suggested.

Conrad Ford, founder of business finance firm Funding Options, which conducted the research, said: “Construction bosses have been forced to dig deeper into their own pockets to help their companies survive.

“Many directors will be worried about Carillion’s collapse and the knock-on effect it might have on their businesses - many will have already seen an impact.”

Search hundreds of local jobs at Jobs24

Management Jobs

Show Job Lists

Newsletter Sign Up

Sign up to the following newsletters:

Sign up to receive our regular email newsletter

Our Privacy Policy

Insight

Jupiter European Opportunities is a £1bn investment trust which aims to achieve long-term capital growth through investing in economic trends and developing businesses across Europe.

Asbestos remains a real concern, says 
Dan Evans, partner at Cozens-Hardy

Women in Business

cover

Enjoy the
Women in Business
digital edition

Read

Celebrating Success

cover

Enjoy the
Celebrating Success
digital edition

Read

B2B Exhibition

cover

Enjoy the
B2B Exhibition
digital edition

Read

Green 100

cover

Enjoy the Green 100
digital edition

Read

Meet the Team

Mark Shields

Business Editor

|

Chris Hill

Agricultural and Farming Editor

|

Business Most Read

Awards

Norfolk Future 50 EDP Business Awards Green 100