Invoice Finance for Construction Companies - £350k Case Study

Case Study: Midlands Construction Firm Secures £350,000 Invoice Finance Facility to Support Growth

Executive Summary

A Midlands construction company successfully secured a £350,000 confidential invoice finance facility to improve cash flow and support upcoming large contracts. Previously reliant on a high street bank that could no longer provide the necessary flexibility, the firm turned to Secure Business Finance for a tailored solution.

The bespoke facility not only reduced funding costs compared to the previous arrangement but also increased the prepayment by 10%, injecting additional capital into the business. With a fast turnaround, the company could confidently continue operations and scale its projects.

Background

The client is a growing construction company in the Midlands, managing commercial and regional building projects. Like many construction businesses, the firm experienced cash flow pressure due to long payment cycles, despite having several large contracts scheduled to start.

Their previous high street bank invoice finance solution no longer met their funding needs, leaving them at risk of insufficient working capital to mobilize upcoming contracts.

The Challenge

The construction firm faced multiple cash flow and financing challenges:

• Urgent need for working capital to support large construction contracts

• Funding limitations from their existing high street bank

• Desire to reduce personal guarantees while maintaining sufficient facility headroom

Without a flexible invoice finance facility, the company risked delayed project delivery and constrained growth.

The Introduction

A corporate advisory firm introduced the construction company to Secure Business Finance, specialists in invoice finance for construction companies.

Secure Business Finance took the time to:

• Understand the company’s business operations and contract structures

• Assess cash flow cycles and debtor profiles

• Evaluate growth plans and future funding requirements

This consultative approach ensured the solution was bespoke and fully aligned with the firm’s financial needs.

The Solution

After detailed analysis, Secure Business Finance proposed two tailored invoice finance options, allowing the business to select the most suitable facility.

The chosen £350,000 confidential invoice factoring facility offered:

• Improved cash flow to fund new contracts and operational expenses

• Lower fees than their previous high street bank solution

• Increased prepayment % to inject additional working capital into the business

• Reduced personal guarantee requirements through careful structuring

• Confidential operations, maintaining client and supplier relationships

• Rapid implementation, enabling immediate cash flow support

This bespoke invoice finance solution allowed the firm to continue delivering projects without financial disruption.

The Outcome

The implementation of the invoice finance facility for the construction company delivered significant benefits:

• Stabilised cash flow to support upcoming contracts

• Lower financing costs compared to previous arrangements

• Reduced director personal guarantees, lowering personal risk

• Confidence to scale operations and take on larger projects

The construction firm is now positioned to grow sustainably, improve supplier relationships, and deliver projects efficiently.

Key Takeaways

• High street banks may struggle to support fast-growing construction businesses

• Invoice finance for construction companies can offer more flexible, tailored, and cost-effective solutions

• Properly structured facilities can reduce personal guarantee exposure

• Working with a specialist adviser ensures the solution is bespoke rather than generic

About Secure Business Finance

Secure Business Finance provides bespoke invoice finance and working capital solutions for construction companies and other growing UK businesses. Their expertise ensures clients can access flexible, tailored finance to support expansion and project delivery.