M&E firm secures new funds thanks to Enquirer article

Grant Prior 8 years ago

A Berkshire based M&E contractor has secured new funding from a finance firm it read about in the Enquirer.

The firm contacted Nucleus Commercial Finance after being turned down by its bank for extra cash to expand.

Alternative lender Nucleus has now provided a confidential factoring facility to the M&E specialist.

Nucleus said: “The company is ambitious to grow and generate opportunities to win additional new business, but needed additional working capital to finance the extra work.

“Despite having a good track record, the directors were unable to secure a working capital facility from their bank to support them through the growth period.

“Having read an article on the Enquirer it decided to approach Nucleus.”

Nucleus Commercial Finance Managing Director Chirag Shah said that the apparent lack of appetite from banks to lend to SMEs in the construction sector is seeing a growing number of businesses enquire about its industry-specific products.

Commenting on the M&E deal he said: “Having spoken with the directors to assess their funding requirements, we were able to structure a confidential factoring facility with 55% advance rate made available against applications as they are raised.

“This included a flexible facility limit in anticipation of the planned sales increase this year.

“This facility has enabled the company to take on new contracts with the confidence of being able to make payments to subcontractors and suppliers on time, and take advantage of early payment discounts.

“In turn this has freed up management time by reducing the time spent juggling cash to cover the business finance requirements.”

Recent research by Nucleus suggests demand for alternative finance is increasing across all areas of the construction supply chain – particularly among traditional trades.

More than 60% of deals referred to the firm over the last 12 months have been construction related.

Of the 274 deals that Nucleus has seen over the last 24 months, almost all (92%) have been for firms with turnovers of £10m or less seeking a total between them of more than £217 million in cash flow funding.

To see how Nucleus can help with your company finances click here

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