In construction, you can have a full pipeline of work, a great team, and profitable jobs lined up — but if you run out of cash, everything stops.
Cash is the lifeblood of your business. It keeps your materials ordered, your subbies paid, and your vans on the road. Without it, even the most successful builders can find themselves in real trouble.
🪧 What is Cashflow?
Cashflow is the movement of money in and out of your business. It’s not about what you’re owed, or even what you’ve invoiced — it’s about what’s actually in your bank account.
Positive cashflow = more money coming in than going out. Negative cashflow = more going out than coming in.
It sounds simple, but in construction it gets complicated. Delayed payments, up-front material costs, retentions, and VAT bills can all cause major cash gaps.
⚠️ Common Cashflow Issues in Construction
- Late payments from customers
- Paying for materials before getting paid
- Retentions held for months (or years!)
- Unexpected tax bills
- Over-reliance on the overdraft
These issues don’t just affect big contractors. Small and medium builders face them every single day.
🤝 Why Good Cashflow Matters
- You can pay your team and suppliers on time
- You avoid dipping into personal funds or taking out expensive loans
- You can invest in new tools, vans, or staff
- You sleep better at night!
💼 How to Improve Cashflow in Your Business
- Invoice quickly and clearly – Don’t wait until the end of the month
- Use payment terms to your advantage – Request deposits, staged payments or upfront material costs
- Automate reminders to chase overdue invoices
- Plan ahead for tax – Don’t let VAT or PAYE catch you out
- Review your outgoings regularly – Keep control of subscriptions, insurances, and supplier payments
- Keep a live cashflow forecast so you can spot problems before they hit
🔍 A Real-Time View = Confident Decisions
Too many construction business owners rely on gut feeling or bank balance alone to make decisions. But when you know exactly what’s coming in and going out, you make better calls about:
- Hiring staff
- Buying new equipment
- Taking on bigger jobs
- Planning for quiet periods
📢 We Can Help
At SGL Accountancy, we help construction business owners build strong, stable cashflow foundations. We’ll help you set up smart systems, improve invoicing, and build a live forecast that actually works.
Don’t let poor cashflow put the brakes on your business.
📅 Book a chat with us today – and let’s get your finances flowing in the right direction.