Our client was dealing with one of our corporate finance partners when they identified that they would be facing a cash flow problem in August due to a quiet period. They provide regular maintenance works mostly to schools, and each year because of closure over the summer holiday period, there is delay to payments being received.
We were asked to assist, and after gathering the necessary information, quickly identified that a Construction Finance facility would help release a large portion of cash that they had ‘tied up’ in their ledger. We spoke with a small selection of lenders who specialise in providing facilities to companies in this sector and after receiving offers, negotiated terms until our client had a proposal that was going to get the result they felt would work for them.
Our client secured a £500,000 funding line which solved their cash flow issue by accelerating the payments received from their customers. This not only solved the immediate cash problem, but also gave them the ability to take on extra work moving forward. The key here was identifying a lender that was able to provide funding against applications for payment, which is common practice for companies who carry out this type of work.
The facility was completed in 5 weeks from initial enquiry through to funds being made available for the client.
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