Case study

Kick-starting recovery with Invoice Finance + CBILS


“Now in a great position to take on
new contracts and make up for lost revenue”

When one of our existing clients required further financial support to kickstart their recovery as lockdown eased, we were able to act quickly and provide them with a CBILS backed term loan of £500k alongside their existing Invoice Finance facility.

This specialist contractor had plenty of projects set up for 2020 until the COVID-19 pandemic started impacting the construction industry. As a direct result of the disruption, the company was forced to halt all trading, saw its projects either placed on hold or cancelled entirely and had no choice but to furlough staff whilst construction sites were prevented from operating.

Entering the recovery period

As soon as the government announced its Coronavirus Business Interruption Loan Scheme through the British Business Bank, Ultimate Finance applied for accreditation so that we could not only help business owners get through the uncertainty of lockdown but also ensure they had the necessary funds to maintain their resilience and be in as good a position as possible as restrictions started to ease and industries could start to recover and rebuild.

When projects began to resume, our client had to act quickly to ensure they could make up for lost time on existing projects whilst securing new contracts to grow after weeks of being unable to do so. The challenge was considerable: with no revenue coming in during the lockdown, the company needed sufficient funds to bring back its furloughed staff and secure enough cashflow to cover costs before payments to them restarted.

Keeping business moving forward

As they already had a Construction Finance facility with Ultimate Finance, they were able to apply for a CBILS term loan simply by getting in touch with their dedicated Relationship Manager, Melanie Howarth. The director says, “We were happy with our existing facility with Ultimate Finance, and when they launched their CBILS offering we were glad we didn’t need to fill in any lengthy application form to be considered”.

A £500k CBILS term loan was put in place, with no additional security required and with the added benefit of a 3 month capital repayment holiday as part of the scheme, enabling the company to ramp up trading before the first monthly repayment was due. Melanie Howarth, Relationship Manager at Ultimate Finance says, “The Business Interruption Loan Scheme has been very popular with our existing clients and new prospects, be it through our Invoice Finance, Asset Finance or Bridging Finance facilities. It’s great to be able to help UK businesses stand strong against the impact of the pandemic through our accreditation by the British Business Bank. The term loan enabled our client to retain their staff and prevent any redundancies, which is a relief. They’re now in a great position to take on new contracts and make up for lost revenue”.

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