Case Study: Fire Protection & Security systems (Factoring)
The client in this deal provides fire protection, security and AV Solutions. The business was established in 2010 and has two directors who have grown the company to their current turnover of £1.2m per annum. They had been experiencing a rapid growth in opportunities but were having to turn the work down as they didn’t have the funding required to start the jobs.
When they approached their business bankers, they were only able to secure a £25k OD. They had experienced losses in their previous annual accounts due to a large contract which had gone wrong – mainly due to uncertified variations not being paid.
The Lender was able to provide a £100k facility with a construction invoice discounting facility.
- 70% advance against uncertified applications & invoices
- Funding delivered at the earliest stage possible
- Dedicated, expert & experienced relationship team
- Providing Advice & funding to help deliver projects to time and cost
- £75,000 advance on day one
- Funds used to obtain a discount on the purchase of new fire systems
Despite the prior losses in this business, the Lender was very impressed with how the directors had learnt from previous mistakes and with some advice, were able to help them strengthen the variation approval process with their customers.
The facility and support from the Lender will help to keep the directors with a funding facility which will grow with their rapid growth plans and also helping them ensure those variation orders get agreed and paid.
The facility remains confidential so the customers are not aware of the Lender’s involvement. They do this by creating email addresses in the client’s name and also having confidential telephone numbers; they become a professional extension of the client’s administration & finance team.