GSE Group is a civil engineering and plant hire construction firm. Founder Darrell Healey (pictured below) explained the challenge they were facing: “We’re a construction business and like most construction businesses the work is all paid for on monthly valuations. Because it’s not straightforward debt it’s difficult to get normal banks to lend you money.
“Initially we wanted to repay our existing overdraft facility to generate some working capital. Nucleus understood our business better and was simply more flexible than the other companies we were talking to.”
GSE looked at a couple of providers but Nucleus’s rates were the most competitive. The funding was split between the group’s civil engineering and plant hire divisions. Nucleus CEO Chirag Shah noted: “We do a lot of our business in the construction sector. It’s where banks and other alternative funding providers struggle. Having a dedicated team of quantity surveyors in-house meant we were able to quickly provide a £1,800,000 specialist construction application finance facility. Our survey team ensured we properly understood the groundwork GSE was undertaking and enabled us to fund the business appropriately.”
The GSE plant hire business, GSE Plant Ltd, hires out diggers and construction plants to other GSE divisions and external customers.
Healey explained how asset finance helped GSE Plant Ltd grow: “This was a landmark deal for the business. Nucleus provided us with an asset finance facility in which we used our plant as security. A £1.2m asset finance package was agreed enabling us to replace and upgrade existing plant hire machinery and increase the number of vehicles available to customers – we’ve been able to expand our business and grows profits faster.
“Our total exposure for GSE Group is now down to £371,000 and we anticipate clearing all our facilities with Nucleus by 30th September 2016, a full six months earlier than expected. It just wouldn’t have been possible with the bank.”
Healey concluded: “Nucleus was open to changes in our requirements as and when we needed them to be, and its team was very reactive. We’ve been able to pay suppliers and subcontractors quicker, and because we can draw down money as and when we complete work, we benefit from better supplier discounts.
“Nucleus has been fantastic to work with: the team is very flexible and proactive, and takes the time to fully understand our business needs - ultimately Nucleus ensures we get paid on time.”
If you need flexible, well structured finance, then contact our team today.