Invoice finance for construction companies, £350k case study

A Midlands construction company secured £350,000 in invoice finance to improve cash flow and support large contracts. Moving from an inflexible high street bank, the firm achieved lower costs, increased prepayment, and faster implementation.

Background

A growing Midlands construction company managing commercial building projects, facing cash flow pressure from long payment cycles despite having contracts secured. Their existing bank facility no longer gave them adequate working capital flexibility.

The challenge

• Urgent working capital needs for upcoming contracts
• Funding limitations from the incumbent provider
• A goal of reducing personal guarantees while keeping facility headroom

The introduction

A corporate advisor connected the company to us. We analysed operations, cash flow cycles, debtor profiles and growth requirements to build a solution around them.

The solution

A £350,000 confidential invoice facility delivering:

• Improved cash flow for contracts and operations
• Lower fees than the previous arrangement
• An increased prepayment percentage
• Reduced personal guarantee requirements
• Confidential operation, and rapid implementation

The outcome

Stabilised cash flow, lower financing costs, reduced director personal guarantees, and the confidence to scale.

Key takeaways

• High street banks may lack flexibility for growing construction businesses
• Invoice finance can be more tailored and more cost-effective
• Proper structuring reduces personal guarantee exposure

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