Correct Contract Services

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• Correct Contract Services

Mechanical 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 that the good quality of their work resulted in a lot of welcome referrals in a short period of time, but that meant uncontrolled growth. Like for most businesses, experiencing such rapid growth led to cash flow headaches.It only takes a single customer to go bankrupt and not pay their invoices for it to cause a problem.

Like most businesses in need of finance CCS initially turned to the bank for support – unfortunately ‘the computer said no’. The bank was not cooperative and they wanted masses of security. The business then turned to the alternative finance market instead and approached a Nucleus competitor, but because CCS tend to work on single figure contracts so their charges were way too high.

The electrical contractor was then introduced to Nucleus. After explaining their dilemma, the Nucleus team understood the challenge CCS were facing. Small and medium sized businesses 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.

Our team structured a £300,000 growth-focused invoice finance facility for CCS. Gladwyn said:The package meant CCS enjoyed a positive cash flow and most importantly could comfortably 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.

What Gladwyn and the CCS team liked about Nucleus was the flexibility that was offered, with overpayment facilities, rates, and the speed at which funding could be drawn down. Our simple client platform is straightforward to use and provides good reporting tools, making the lives of the CCS finance team much simpler and streamlining communication, about late payments for example.