Construction, Contracts & Cash: Craig Talks with Lloyds Bank’s Jim McFadzean

In this episode of The Know Your Numbers Podcast, Craig Alexander Rattray sits down with Jim McFadzean, Head of Client Management at Lloyds Bank Invoice Finance, where he leads the team specialising in construction sector funding.

Jim brings over 40 years of experience at Lloyds and offers a no-nonsense perspective on what it really takes to run a successful and sustainable construction business. From pay-less notices and paper trails to the vital role of accurate forecasting, this conversation is packed with practical insight for anyone operating in one of the UK's toughest sectors.

This is a must-listen for construction business owners and anyone working with them - from funders to accountants to advisors.

 

 

Key Topics Discussed:
✅ Why invoice finance is critical to construction sector growth
✅ How to know if a contract is really worth taking
✅ Why “know your numbers” isn’t just a slogan – it’s survival
✅ Pay-less notices, poor paperwork, and how to avoid nasty surprises
✅ The power of building a proper management team
✅ Why a good QS and lawyer can save you a fortune
✅ How Lloyds Bank are seeing cautious optimism in the sector

 

 

Key Takeaways:
✅ A profitable contract isn’t just about turnover – it’s about margin
✅ You can’t run a construction business on outdated MI
✅ Reputation, delivery and good systems matter more than ever
✅ Good funding relationships are built on transparency and trust
✅ It’s not just about invoices – it’s about families and livelihoods

 

 

Memorable Quotes:
📢 “The last MI was 5, 6, 7 months ago… I don’t know how you run a business like that.”
📢 “Good businesses get funding - but you’ve got to know your numbers.”
📢 “Pay-less notices are part and parcel of the sector – but they don’t have to ruin you.”
📢 “Get the variation in writing. Every time. Or it’ll cost you.”
📢 “We want to be seen as trusted advisors. Our average invoice finance client stays with us for 9 years.”

 

 

Timestamps:

00:52 Meet Jim McFaren: A Journey in Finance

02:32 The Importance of Cash Flow in Business

03:24 Challenges in the Construction Sector

10:48 Understanding Invoice Finance

20:15 Advice for Business Owners

29:46 Conclusion and Final Thoughts

 

 

Resources Mentioned:
📌 Know Your Numbers Website – Helping construction businesses build with clarity
📌 Rolling 13-week Cash Flow Forecasting Training – The tool that became a client’s Bible