Builders struggling to get finance

Tight lending rules by banks are costing jobs in the building and construction industry say the Master Builders Association of Victoria. According to a recent MBA survey, approximatley 57% of builders had lost work when projects fell over in the December 2009 quarter because of tighter lending conditions. 165 projects in Victoria, worth about $1.5 billion, are thought to have failed or been delayed in the last few months.

MBA executive director Brian Welch said “Lack of lending to the commercial sector is going to result in increased unemployment as this year progresses, specialist contractors are now laying off people, starting with those who appear on site first, so that's everyone from demolition, to piling and excavation. Unemployment will work its way through to those at the end of the process this year, such as fit-out contractors and office-furniture supply.”

If you require commercial finance or development finance for your project, Intellichoice may be able to assist with your finance needs. Speak to a mortgage broker at 1300 55 10 45 or email info@intellichoice.com.au for more information.