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Rail Refurbishment Sub-Contractor

Type: Construction Finance

Borrowed: £120,000

Nucleus Commercial Finance has recently provided a confidential factoring facility to a sub-contractor specialising in railway refurbishments. The business has been established for nearly a year and has grown to over £1m turnover, funded only by a £15k overdraft.

The directors had a previous business that had failed due to an ill-timed diversification into solar panel installation. This previous failure coupled with the highly contractual nature of the debt meant that this new company could not get their bank to extend overdraft facilities or source a competitive invoice finance solution. Nucleus were approached by their accountant due to our experience and knowledge of the sector and our ability to structure the right solution for such businesses.
Nucleus invested significant time and resources to understand the contractual nature of the debt and secured QS advice on contracts to tailor a flexible solution for the business by providing:
  • A cheaper fixed fee facility compared to other providers of construction finance
  • 50% pre payments for highly contractual debt to generate adequate working capital
  • High concentration of 75% on their major debtor with bad debt protection sourced by Nucleus at competitive rates
A confidential facility to prevent the need for disclosure to their debtors

Nucleus' flexible solution has enabled the business to:
  • Boost turnover and increase profitability with additional working capital
  • Meet payroll and all supplier payments on time
  • Take pressure off the everyday struggle of surviving on the inadequate £15k overdraft
  • Avoid raising equity capital which would have diluted existing share holders ownership
To find out more about how our powerful range of funding solutions can give your clients a new lease of life, contact us now on +44 (0)207 839 9451 or email contact@nucleus-cf.co.uk.

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