Background
The client operates in the commercial construction sector, completing subcontract works for Tier 2 builders and invoicing via progress claims.
Funding progress claims is complex. Contract clauses relating to set-offs and damages mean very few lenders will advance against these invoices.
At the same time, the business had recently repositioned strategically. The shift reduced short-term turnover, resulting in trading losses and accumulated tax debt.
The director had also reduced overheads to stabilise the business. He was on-site during the day, managing projects and completing bookkeeping at night.
Despite the short-term pressure, several new contracts had been secured, and turnover was forecast to grow significantly over the next 2–3 years.
The opportunity was strong.
The funding structure was not.
The director needed working capital aligned to growth and financial guidance to execute confidently.
The Challenge
An existing FinTech lender held:
- A General Security Deed over all assets of the business
- A second mortgage over the director’s home
They were unwilling to extend funding, yet their security restricted access to alternative solutions, including invoice finance. They also required high weekly principal repayments, which negatively impacted cash flow.
This is common: a one-off loan relieves immediate pressure but doesn’t address the underlying cash flow structure.
The business didn’t just need more capital.
It needed the right structure and better financial visibility.
Our Solution
We implemented a dual solution: Funding and Financial Guidance
- Funding
To reset the funding structure and support growth, we implemented:
- $350,000 Commercial Loan
- Long-term Principal & Interest structure
- Secured via second mortgage
- Existing FinTech debt cleared in full
This removed restrictive security and reset the funding base.
- $500,000 Confidential Invoice Finance facility
- 75% advance against progress claim invoices
- Funding was provided when invoices were raised, not when Payment Schedules were issued
Very few lenders fund progress claims in this way.
By accessing broader balance sheet assets and structuring funding around how the business actually operates, we created working capital certainty aligned to growth.
- Financial Guidance – Strengthening Performance
Financial reporting lacked structure, limiting visibility and strategic planning. We implemented scalable financial guidance aligned to the business’s needs:
- Managed bookkeeping function
- Embedded CFO-level oversight and reporting
- Ensured reliable, accurate, and timely financial data
- Supported tender costing and margin management
This improved clarity over margins and cash flow, strengthened pricing discipline, and gave the director confidence in decision-making.
The Outcome
- FinTech debt cleared
- Restrictive security removed
- Progress claims funded
- Working capital aligned to contract cycle
- Financial reporting stabilised
- Strategic financial oversight embedded
The director described the immediate impact: “I wish I’d known about you sooner.”
“This is the best I’ve slept in weeks.”
The referring broker summed it up well, saying words to the effect:
“You’re cheap. There’s no way this client could access best-practice bookkeeping, CFO support and a working capital facility secured by his balance sheet at the cost of your facility.”
The relief wasn’t just from funding.
It came from clarity, structure, and knowing the business had both capital and guidance to support sustainable growth.
