Building up success with construction finance
This company specialises in providing the installation and maintenance of both car park ventilation and smoke ventilation systems to architects, private developers and consultants. The fire detection and smoke management sector is generally split into two categories, with companies specialising in either above ground or underground, but with plenty of experience this business is able to specialise in both categories, allowing them to serve a wider variety of customers.
On the lookout for funding support back in 2018, the business’ director was recommended Ultimate Finance’s services by another business owner. They explain, “A director that was currently using Ultimate Finance for their business recommended that we look at a facility they could provide. After meeting with their team, it was evident that their specialist construction product suited our business needs and they tailored a £100k construction facility to provide us with access to the cashflow we required to meet our ambitions”.
Relationship manager Louis Crawley adds, “Initially, the business had payment terms of 45-60 days with their customers but were only given 30 days payment terms by suppliers, which made managing their cashflow a challenge. In construction, taking on contracts is what makes a business money, but it also costs from the very start. To help bridge the gap, our funding solution provided them with additional liquidity to keep the ball rolling by letting the business access the cash they were owed instead of it be tied up in lengthy contracts”.
As the business continued to grow, so did our relationship and their facility. Louis continues, “Our Working Capital solutions are designed to grow alongside our clients’ businesses so that they always offer the right funding as and when needed. When the business filed their first year of accounts in 2019, they were generating a turnover of £300k. Fast forward to 2021, and, despite difficult trading conditions brought upon by the pandemic they turned over £660k, which meant we were able to provide even more funding in line with their growth”.
With a strong start to 2022, the business is now focused on meeting its latest ambition: grow to a £1,000,000 turnover and take on larger projects than ever before.
