£1m Invoice Finance Facility for a Contractual Business
18th March 2024
Key Figures:
- Client: Electrical Installation Service
- Facility Amount: Circa £1m
Enness was approached by a UK power generation company specialising in installation and design in this unique case. The company faced significant gaps in its working capital cycle, a challenge requiring a tailored solution. Enness stepped in with an invoice finance facility, effectively addressing the issue and ensuring the company's cash flow remained steady.
One of the most significant hurdles in this sector was the scarcity of lenders willing to provide invoice finance for a company that receives both stage payments and payments on a contractual basis. This challenge was compounded by the fact that many lenders are increasingly cautious about working with construction-type businesses. However, Enness's expertise and industry knowledge allowed us to find a solution.
The terms of the facility provided to the company were as follows:
- Circa £1m facility limit
- Above 60% advance rate per invoice
- Competitive interest rate of 3% +base on drawn funds
These terms were designed to meet the company's specific needs and ensure a smooth cash flow.
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