Our client has two businesses, a plastering business working on large commercial construction jobs across the state with contracts in excess of $1M and a commercial cleaning business that services all stages of cleaning through the construction process. The plastering business has been pitching for increasingly larger contracts and was looking for finance to support their growth as they won more and more business.
The plastering business receives progress payments based on the stage of work they’ve completed and the cleaning business bills their clients on invoice.
Looking at the position of the two businesses we negotiated a Trade Finance Facility with a group limit of $100,000 and a debtor finance line of credit for the cleaning business with a $250,000 facility limit. The Trade Finance facility provides both businesses the ability to make material purchases while preserving cash and the debtor finance facility works like an overdraft facility, meaning the business owner can use the credit provided for any purpose they determine – pretty handy at times like this.
No property security to obtain these approvals.