Contractual debt presents a serious challenge to cash-strapped businesses but not an insurmountable one - at least not if you’re working with Nucleus Commercial Finance. Nucleus is not a 'traditional’ invoice finance company. Nucleus looks at the issue, and then finds an appropriate funding solution, as it did recently for a Midlands-based commercial fit out company that was struggling to have enough working capital to operate. The company was a phoenix, born out of a company that had failed two years earlier, but was steadily rebuilding its business. The difficulty was that large amounts of its cash were being tied up in the type of long contracts that are typical to the construction industry, where framework agreements and staged payments are the norm. The challenge became so great that the company’s existing facility was suspended, and with no other funding available, the owner was obliged to inject a considerable sum of his own money.
Then he found Nucleus Commercial Finance who arranged a 100% finance facility, on a confidential basis, for a transparent, fixed fee, giving the business access to more than £290,000 on a revolving basis. What impressed the owner the most was the speed with which the decision was made, in just a few days we were able to give the client a ‘yes’.Construction is a particular area of specialism for Nucleus and using out knowledge we have developed a specialist receivables product, Construction Finance.
We have in-house Quantity Surveyors, with extensive financial and risk experience in the construction industry and associated supply chain. The team offer an end-to-end experience for any client and funding becomes a true partnership. Our solutions provide pre-payments against applications, stage payments and milestones for sub-contractors in construction or other industries where contracts with their customers have been a barrier to finance from traditional lenders.
Nucleus have a unique process for analysing and managing a contractual debt based businesses like ours.
Is contractual debt and long payment terms causing you to struggle with working capital? We can help, get in touch with our team today.