AREA: South East
AMOUNT RAISED: £300,000 facility
PRODUCT USED: Invoice finance
In the construction industry, managing cash flow can be particularly challenging due to long payment terms and project-based income. This case study highlights how Bridging Finance London helped a growing construction company overcome its liquidity constraints and position itself for future success.
Client Scenario
A South East based medium-sized construction firm approached us after experiencing cash flow difficulties following a period of rapid growth.
The company had recently won several large contracts, which required significant upfront investment in materials and labour. However, with payment terms extending up to 90 days, the business found itself struggling to meet its immediate financial obligations and fund ongoing operations.
Funding Solution
After a comprehensive review of the client’s financial situation, Bridging Finance London identified invoice financing as the most suitable solution.
We approached select lenders with experience in the construction sector and negotiated favourable terms on behalf of our client.
The resulting agreement included:
- Facility: £300,000
- Term: 18 months
- Advance rate: 85% against approved invoices
- Security: Debenture over company assets
Final Outcome
The invoice finance facility provided the company with immediate access to working capital, allowing them to:
- Pay suppliers promptly, securing better terms and discounts
- Take on additional contracts without cash flow concerns
- Invest in new equipment to improve efficiency
- Hire additional staff to support business growth
The flexible nature of the facility meant the company could draw funds as needed, reducing overall borrowing costs. Within six months of implementing the invoice finance solution, the business reported a 30% increase in turnover and significantly improved profit margins.
By leveraging their accounts receivable through invoice financing, this company transformed its cash flow position from constrained to comfortable. This case demonstrates how tailored funding solutions can not only resolve immediate financial challenges but also create opportunities for sustainable business growth. Bridging Finance London’s expertise in sourcing and structuring specialised finance packages proved instrumental in achieving a positive outcome for our client.
