The credit crunch and mezzanine floors Mezzanine floors and planning permission

The credit crunch and mezzanine floors

June 22, 2010

Mezzanine floors

Mezzanine floors

Buying mezzanine floors is an expensive business. As a one off capital expenditure, it is among the larger investments made by many companies. On all but the smallest floors and the most creditworthy customers, the buyer is going to be asked to part finance the project as it goes on.

Mezzanine floor vendors and buyers both rightly want to minimise risk by paying in stages. This has been the case in good times as well as harder times, however in harder times making advance payments to smaller undercapitalised mezzanine floor vendors can present an unacceptable risk to buyers.

Vendors are currently under pressure from increasing raw material prices and reduced credit limits squeezing cashflow. With increased competition squeezing margins there may not be enough cash to go round. It is all the more important in this environment to ensure the financial stability of your proposed supplier of mezzanine floors, and perhaps not just to accept the cheapest offer.

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