Six-figure Invoice Finance facility secured for a well-established Construction company that provides light remedial building repair work (think windows, doors, plastering, sealing etc.) based in East Midlands. Since inception, the company had worked with new house builders.
Due to a general slowdown of the new housebuilding market, the business was transitioning their focus towards housing associations which command higher margins and more consistent workflow. The transition would see a softening in performance before the benefit of the increased margins kicks in.
The new strategy will however lead to a concentration within the sales ledger, the result being the business no longer fit the incumbent bank’s credit profile.
With this in mind, the business needed to source an alternative Invoice Finance facility. Due to our excellent relationship with the incumbent bank, they were directed to Navigate Commercial Finance to help secure a new home in line with their plans.
We sourced a lender that was comfortable with the strategic plan and high concentration, who bought into the robust cash flow forecasts demonstrating the upward trajectory.
The new funder agreed to improve the funding parameters, namely an increase in concentration by 50% and increase in the prepayment by 25%.
Not only has this new structure generated more funding from day-one and ongoing, the business now has confidence to take on the right work at improved margins.
