A well-established West Midlands construction company specialising in plastering, dry lining, rendering, partitioning, and suspended ceilings has secured a six-figure Revolving Credit Facility through Navigate Commercial Finance.
The business faces typical sector challenges: subcontractors must be paid weekly, often resulting in the company carrying up to eight weeks of labour costs before receiving payment from main contractors. Combined with upfront material costs and increasing project volumes, significant cash was becoming tied up in working capital. The company also operates with standard 5% retentions (2.5% at practical completion and 2.5% after 12 months), further impacting liquidity.
A Revolving Credit Facility was identified as the ideal solution. It provides flexible headroom to bridge timing gaps, allowing the business to draw funds as needed and repay once applications are certified — creating valuable surplus liquidity without long-term cost.
We secured competitive terms with a lender offering no arrangement fee and interest charged only on the amount drawn. This cost-effective structure perfectly aligns with the company’s cashflow cycle.
The new facility has delivered the working capital support required to manage growth confidently, ensuring subcontractor and supplier payments are never delayed while the business continues to expand its operations across the Midlands.
This tailored funding solution has removed cashflow constraints and given the company the financial agility to take on larger projects with confidence.
