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Correct Contract Services

Type: Invoice Finance

Borrowed: £300,000

danny gladwyn correct contract servicesMechanical contracting firm Correct Contract Services (CCS) had a welcome problem. Years of fast growth led to cash flow problems which were then compounded by a contractual dispute and a couple of customers going into administration. Managing director Danny Gladwyn (pictured) explained: "The quality of our work resulted in a lot of referrals in a short period of time, leading to uncontrolled growth. Like most businesses, rapid growth leads to cashflow headaches and all it takes is a customer to go bankrupt and not pay their invoices for it to cause a problem."
 
Like most businesses in need of finance CCS turned to the bank for support - unfortunately the computer said no. Gladwyn continued: "The bank was not cooperative - they wanted masses of security and basically weren't interested in helping. We turned to the alternative finance market instead and approached Bibby, but we work on single figure contracts so their charges were way too high."
 
The electrical contractor was then introduced to Nucleus. CEO Chirag Shah reflected on CCS's dilemma: "Small and medium sized businessed are all about sales - and rightly so. They focus on winning and servicing business which makes sense. Rapid growth can be challenging, but with the right business structuring and flexible funding, companies like CCS can expand with confidence.”
 
Nucleus structured a £300,000 growth-focussed invoice finance facility for CCS. Gladwyn said: "They were very flexible with overpayment facilities, rates, and the speed at which we could draw funding - their platform was simple and straightforward to use and provided good reporting tools so we could easily notify them about late payments for example. 
 
"Importantly they were also very supportive and personal. They regularly reviewed what we needed and helped with any restrictions."
 
The Nucleus invoice finance package meant CCS enjoyed a positive cash flow and most importantly could take on more clients. Nucleus also advised on the appointment of a non-exec finance director to help sustain their growth through a better business understanding of contractual risk.
 
Gladwyn concluded: "They’ve been fantastic from our point of view. The banks were rigid and Bibby's rates unpalatable – but Nucleus was flexible with overpayment facilities – they always find a way to fund our business requirements. 
 
"We'd honestly recommend them to anyone."
 
If you need flexible, well structured finance, then contact our team today.

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