The South African construction industry’s calendar is set by the seasons. Seasonal slowdowns and adjustments due to weather changes, not to mention the end-of-year break, means - for you as a construction business owner - timing is everything. Whether you’re pouring concrete, laying bricks, or coordinating subcontractors, the calendar is dictated by external conditions. And that means the calendar often dictates your cash flow just as much as your workload does.
While the construction industry peaks in winter in South Africa, the impact of colder weather and shorter days can be devastating to small business owners. Wet weather, the negative effects of temperature drops on equipment and stock, additional time needed for site preparation and maintenance, and dips in worker productivity due to frigid conditions all need to be accounted for.
This often brings project delays and numerous health and safety issues. If you run a construction business in South Africa, you already know you need a financial buffer to help weather the seasonal peaks, troughs, and opportunities. Construction is a capital-hungry industry!
So how do you prepare for the peaks? And how do you survive the dips? How do you take full advantage of the winter months? That’s where smart, flexible business funding from Merchant Capital comes in.
Why construction doesn’t stop in winter
South Africa doesn’t experience the kind of deep-freeze winters that shut down construction in the northern hemisphere. Instead, the cooler months, especially in the inland provinces, often offer clearer skies, fewer rain delays, and the perfect conditions for interior refurbishments, structural repairs, and infrastructure projects.
You may also find yourself taking on more indoor projects in commercial or residential settings: shop fittings, warehouse modifications, office remodelling. Government infrastructure projects, too, tend to move into execution mode during this time.
That means your workload may increase, but so do your cash requirements.
Here’s what you need cash for to ‘make hay while the (winter) sun shines’:
- Upfront material purchases
- Hire more contract labour
- Buy or lease equipment
- Settle supplier accounts faster to secure stock
- Fuel and transport costs
Without steady access to working capital, your business risks missing out on the very season that could bring in the most revenue.
Related: How the Building & Hardware Industry Can Respond to the Conscientious Consumer
The catch? Construction is seasonal
Yes, the construction season peaks in winter, and you need provision to make the most of it. But you’ve got to make it through the slower months too.
Seasonal rains delay projects. The December slowdown brings fewer new contracts. Labour becomes unpredictable.
That’s why construction businesses often face a cash flow rollercoaster. Revenue doesn’t always match expenses, and a busy order book doesn’t guarantee liquidity. You can’t always wait for an invoice to be paid before funding your next job.
That’s where we come in.
How Merchant Capital funding helps construction businesses stay ahead
At Merchant Capital, we understand the peaks and troughs of the construction cycle. Our flexible funding solutions are built for agility, so you have the freedom to access capital when you need it most, without the red tape of traditional loans.
The Alternative to Bank Loans: Alternative Business Funding to Fund Your Business Growth
Here’s how our funding helps construction businesses manage seasonal demand
1. Bridge the gap between jobs
Waiting for a big payment to clear? Need to secure a new contract in the meantime? Our funding helps you stay liquid so you can take on new work without delay.
2. Invest in stock and materials
Bulk buying ahead of winter can save you money if you’ve got the capital to do it. Our quick-access funding puts you in a stronger negotiating position with suppliers.
3. Upgrade equipment without draining cash flow
Need to lease scaffolding, buy new drills, or fix your bakkie? Flexible funding gives you the option to invest in tools and transport when it matters most.
Explore: Asset Financing
4. Hire more crew to hit deadlines
Construction projects are deadline-driven. If you need extra hands to deliver on time, we help you fund the additional labour before your payment terms kick in.
5. Cover day-to-day operational costs
From insurance to office rent to vehicle maintenance, it all adds up. Our funding cushions your operational costs so you can stay focused on delivery.
Explore: The Difference Between an Overdraft and a Cash Advance for Your Business
Apply for fast, flexible financing that’s built for construction companies like yours
Our application process is fast and straightforward, and our repayments are structured to suit the realities of small and medium-sized business operations. No mountains of paperwork. No long waits. Just capital when and where you need it.
The Merchant Capital application process
- Apply online
- We’ll create a tailored offer
- You get the funds
It’s that simple, and that fast.
Let’s get building
You’ve worked hard to build your construction business. Don’t let seasonal swings hold you back. With the right funding in place, winter doesn’t have to mean a scramble for cash. It can be the start of your most profitable season yet.
Apply for flexible business funding from Merchant Capital today and take control of your construction cash flow, no matter the season.
FAQs
What do builders do in the winter?
In South Africa, builders don’t down tools in winter, they ramp up. This season is ideal for indoor projects like shopfitting, renovations, maintenance work, and infrastructure upgrades. At Merchant Capital, we support builders with funding to help take advantage of this winter work surge and keep cash flow steady between contracts.
What season is best for construction?
There’s no one-size-fits-all answer. Dry winters in many parts of South Africa make for fewer weather delays and great conditions for certain types of construction. But whether you’re building in summer or winter, we help you access capital when you need it, so you can take on more work in any season.
How to layer for winter construction?
Working outdoors in winter calls for warm, breathable layers. Think thermal base layers, waterproof outerwear, and insulated gloves. While you focus on protecting your team from the cold, we help protect your business from financial slowdowns with flexible funding to keep operations moving.
What time of year is best for construction?
It depends on the type of project. Winter offers drier conditions ideal for certain builds, while summer may favour exterior work where rain isn’t a major factor. At Merchant Capital, we provide funding that helps you take advantage of whichever season your schedule, and the weather, demands.
