In the bustling world of small businesses, where innovation can be hampered by financial hiccups, Branta stands as a beacon of hope. Our recent collaboration with The Homemade Brownie Company, a UK-based artisanal brownie maker, illustrates a scenario where determination meets opportunity head-on, resulting in sweet success.

If you own a small or medium-sized business and have ever applied for a loan or credit facility, you may have come across the term "personal guarantee." Simply put, it's a legal contract between the lender and the borrower that states that one or more individuals will act as a guarantor for the loan, should the business be unable to repay it. In this blog post, we'll explore what personal guarantees are, why lenders require them, and how you can deal with them to protect yourself and your business.

It's an open secret that the construction industry is currently going through a challenging period. This predicament has resulted from a confluence of factors, including the COVID-19 pandemic, escalating materials costs, labour supply issues, main contractors failing to meet payment expectations, and banks reducing their support for the sector. With increasing cash pressures and banks reducing the availability of borrowing facilities, the traditional avenues for financial support are becoming less accessible. But what options does a construction business owner have during these difficult times? Thankfully, there are alternative financing structures available. At Branta, we're dedicated to helping you navigate these financial waters and move your business forward. The Current Financial Landscape in the Construction Industry The global COVID-19 pandemic has wreaked havoc across all sectors, and the UK construction industry hasn't been spared. The pandemic has disrupted supply chains, leading to increased costs for materials. The problem has been compounded by labour shortages due to Brexit-driven immigration policies and self-isolation requirements. Moreover, main contractors are not meeting payment expectations, exacerbating cash flow issues for many businesses. Banks, traditionally a reliable source of funding, are reducing their support for the sector, leaving many companies in the lurch. And finance directors are increasingly anxious as cash always seems to arrive too late. Late payments can wreak havoc with a company’s reputation, which in turn hampers their ability to procure labour and materials. Which may then affect their hard-earned commercial advantage when tendering for new work. Issuing a notice to suspend work - a last-ditch effort to remedy non-payment - is proving to be a futile exercise rather than a solution. These mounting pressures have left many construction firms in a precarious financial position, struggling to see a long-term future for their company. What Does This Mean for Construction Business Owners? In these challenging times, construction business owners may feel like they're in a financial squeeze, with dwindling resources and limited avenues for financial assistance. This could lead to a slowdown in operations, layoffs, or worse, business closure. However, it doesn't have to be this way. There are still viable financial solutions available, and that's where alternative financing comes into play. Managing cash flow is a universal challenge for businesses, with 61% of small business owners regularly struggling with cash flow issues. Poor cash flow management can lead to serious problems, even when a busine ss appears profitable. The struggle to maintain cash levels often stems from a variety of factors. Low profit margins, holding too much stock, giving customers too much credit, and unnecessary spending are all common causes of cash flow shortfalls.  Moreover, small and medium-sized businesses are particularly prone to irregular cash flows and limited liquidity. This makes it crucial for these businesses to pay close attention to their working capital and cash flow management. Introducing Alternative Financing In the face of these challenges, where should a company turn if it needs additional financial support? Traditional UK banks may not be the most reliable source of aid in these trying times. Thankfully alternative financing options exist that construction businesses can explore. These include solutions from various non-traditional sources, but companies should be assured that alternatives to traditional banks do exist. Alternative financing refers to financial channels, processes, and instruments that have emerged outside the traditional finance system such as regulated banks and capital markets. These may include peer-to-peer lending platforms, crowd funding, invoice trading, supply chain and trade finance, among others. These financing options can offer more flexibility, shorter approval times, and potentially lower interest rates compared to traditional banking facilities. How Can Branta Help? At Branta, we understand the financial challenges faced by businesses in the construction sector. That's why we're committed to guiding you toward the most suitable financing options that will support your business's needs. Our team of dedicated professionals will work closely with you to understand your business's unique challenges and goals, allowing us to recommend the most appropriate financing options. Whether it's identifying suitable alternative financing structures, helping you understand the risks and benefits, or assisting with the application process, we're here to help every step of the way. Take the Next Step Don't let financial constraints hold your construction business back. There are alternative financing options out there that could provide the financial support you need to keep your business thriving even in these challenging times. Contact us at Branta today to learn more about how we can help you navigate these alternative financing options and keep your business on the path to success. Conclusion Navigating the current financial landscape in the construction industry can be daunting, but it's not a journey you have to take alone. With the right guidance and access to alternative financing options, your construction business can weather the storm and emerge stronger. Reach out to us at Branta today and let's explore how we can build a stronger financial future for your construction business together.

Branta's M&A Advisory Services Help Facilitate Strategic Acquisition by HeiQ

As a leading corporate finance boutique, Branta is pleased to announce its role in providing financing solutions for a UK-headquartered construction consultancy. The company specialises in quantity surveying services and sought corporate finance solutions to support its international growth strategy and fund new projects. UK businesses often face challenges when seeking funding in the US. The US operates differently from the UK in terms of regulations, business practices, and credit appetite for UK SMEs. This often creates barriers for UK businesses to access funding and establish relationships with US financiers. However, Branta's team of experts has extensive experience working in both UK and US markets. This allowed the company to utilise its knowledge and expertise to find a creative solution that met the needs of the company. Branta worked closely with the company to understand its financing needs and structured a bespoke corporate finance solution tailored to its unique requirements. The financing package included a mix of invoice discounting and factor financing, as well as access to a network of industry contacts and strategic partners. The funding for the company was provided by Franklin Capital in the US and Bibby in the UK, whose combined support were instrumental in helping the company achieve its financing goals. "We are delighted to have worked together with Branta to provide financing to this innovative and ambitious UK quantity surveying firm," said Sue Duckett , COO at Franklin Capital . "This financing will enable the company to expand its operations and pursue new opportunities." Matt Dunn , Head of Construction Finance at Bibby Financial Services , added: "We are thrilled to have supported the funding of this dynamic UK business alongside our partners at Branta . We look forward to seeing the company grow and develop further in the coming years." As a provider of quantity surveying services, this company plays a crucial role in the construction industry. Its services help construction companies manage costs, prepare bids, and stay on budget throughout the construction process. Branta's corporate finance solutions will help the company expand its operations, hire additional staff, and pursue new projects. The company plans to use the financing to fund international growth, open new offices and expand its client base. "At Branta, we understand the unique challenges facing companies operating in the construction industry," said Chris Ray , Director, Branta . "That's why we work closely with our clients to tailor corporate finance solutions that meet their specific needs and help them achieve their growth objectives." Branta is a leading corporate finance boutique that provides tailored financing solutions to companies in a wide range of industries. Our team of experts has the experience and expertise to structure customised financing solutions that help our clients achieve their business goals. If you're a company looking for corporate finance solutions to support your growth strategy, contact Branta today. We would be happy to discuss how we can help your business succeed.

Corporate finance is a scary place. Prices are dropping, volumes are shrinking, and it feels like everyone's getting ready to sell.

Are you curious about how much your business is worth? Wondering what the market is like for small businesses right now? Read our report to get the key statistics.

EBITDA valuation of M&A transactions in February 2022

Looking to understand how M&A valuations are conducted in the UK? Look no further than this helpful guide from Branta.