Construction companies still find it very difficult to access funding to invest in their businesses or to help deliver viable housing and infrastructure projects. These were the findings from a recent survey by RSM Ireland and the Construction Industry Federation (CIF).
- 63 per cent of construction companies looking to borrow from financial institutions over the last year reported difficulty in securing finance.
- Only 33 per cent of those involved in house building have obtained bank finance.
- Companies with a turnover under €9 million were worst hit.
- Only 8 per cent of companies surveyed thought the Government play an active role to help construction companies access finance.
Paddy O’Connell, Director at RSM Ireland said;
'Most companies have to rely on cash reserves to fund the business on an ongoing basis. This is not a sustainable model for a growth industry. This overreliance on reserves, combined with the lack of alternative funding sources and difficulty securing finance within the banking system highlights an industry that is yet to fully emerge from the recession.'