Industry: Construction
Product: Factoring with bad debt protection
Facility size: £200k
The client
Based in Lincolnshire, this family-run business specialises in the supply of commercial, ready-to-mix concrete.
Established just 18 months ago, the firm has experienced steady growth, driven by word-of-mouth and a commitment to waste reduction. The expert team takes the time to calculate specific measurements, with in-depth research for the specific needs of each client. Their approach has ensured customers continue to receive only the exact amount of concrete required, resulting in highly competitive pricing.
Typically, construction and building projects order more concrete than is required to compensate for potential issues that may occur. The consequences are multiple, from needless additional cost to the environmental impact of concrete production.
The challenge
As the husband-and-wife team look to expand, they are taking on larger projects that offer greater profit margins. However, these involve new clients who often prefer extended payment terms beyond the company’s current 14-day limit. Being a startup this can put pressure on cash flow.
The business needed a funding solution that would allow them to take advantage of opportunities, while minimising financial risks without the need to hire additional staff or increase administrative workload.
The solution
Recognising the need for a straightforward and time saving outcome, the expert team at Close Brothers Invoice Finance provided a £200,000 invoice factoring facility to support the next stage of growth.
Factoring is an ideal solution for first-time invoice finance users, releasing up to 90% of unpaid invoices quickly and reducing administrative tasks. Close Brothers' credit control team handles customer collections, freeing up working capital and allowing them to extend payment terms without affecting cash flow.
The facility is combined with bad debt protection for further safeguarding. This additional service covers the business if a new, approved customer cannot pay, supporting peace of mind and enabling them to move forward confidently with larger clients.
The result
Since implementing the invoice factoring facility and bad debt protection, the company has successfully onboarded a number of additional clients, undertaking larger and more profitable projects.
The in-house credit control team continues to provide ongoing support, allowing the company owners to concentrate on strategic growth instead of administrative tasks.
Contact us to learn how Close Brothers Invoice Finance can help your growth with our tailored solutions.
