Introduction

Cash flow challenges are not always caused by lack of profit. More often, they are caused by timing.

In this case, a well-established UK tool hire company approached us after experiencing delays in customer payments from large construction clients.

They were not looking for a traditional funding facility or a complex structure. Instead, they wanted access to working capital when required, without ongoing costs or administration.

The Situation: Strong Business, Delayed Cash Flow

Our client was a growing tool hire business supplying equipment to major construction firms.

As is common in the sector, they were operating on extended payment terms of up to 60 days. While revenue and profitability were strong, this created pressure on day-to-day cash flow.

The business needed to manage:

  • Cash tied up in unpaid invoices
  • Ongoing costs such as wages and suppliers
  • Occasional short-term funding gaps

Importantly, this was not a distressed business. It was a stable, profitable company that needed flexibility rather than permanent funding.

Why Invoice Finance Was Not the Right Fit

Invoice finance is often the default solution in these scenarios. However, it was not suitable for this client.

They were clear that they did not want:

  • Ongoing invoice uploads
  • Monthly reconciliations
  • A structured facility with fixed costs

They were not looking to fund every invoice. They simply wanted access to funds when needed.

The Requirement: An “In Case of Need” Facility

The client’s requirement can best be described as an “in case of need” funding solution.

They wanted:

  • A facility available in the background
  • No cost unless funds were used
  • The ability to draw funds only if needed
  • Minimal administration

This is a common requirement for established businesses that want flexibility without commitment.

The Solution: £50,000 Revolving Credit Facility

We reviewed a range of revolving credit facilities and business lines of credit across the UK market.

The solution we arranged was:

  • A £50,000 revolving credit facility (business line of credit)
  • No ongoing monthly repayments
  • No cost unless funds are drawn
  • Interest charged only on funds used

This provided the client with a flexible working capital facility that could be accessed at any time.

Speed of Delivery

Speed was a key factor in this case.

  • Initial decision within 2 minutes
  • Facility available to draw down within 48 hours

This highlights the advantage of modern, flexible lenders compared to traditional bank processes.

The Outcome: Flexibility and Control

The business now benefits from:

  • Immediate access to working capital when required
  • Greater confidence in managing delayed customer payments
  • Flexibility to pay suppliers and staff on time
  • No unnecessary cost when the facility is not in use

In practical terms, the facility provides ongoing financial flexibility and removes pressure from the business. This also means that if they ever need money urgently, they are not paying over the odds for quick money, which is a mistake we see a lot of businesses make.

Why This Approach Worked

This case demonstrates an important point.

Not every business requires a full funding facility such as invoice finance or a term loan.

For many established businesses, the most effective solution is:

  • Access to funding when needed
  • Minimal administration
  • No long-term commitment

A revolving credit facility or business line of credit can provide exactly that.

When a Line of Credit Is a Good Fit

A revolving credit facility may be suitable if your business:

  • Operates on extended payment terms
  • Experiences occasional cash flow gaps
  • Does not want the administration of invoice finance
  • Requires flexibility rather than a fixed loan

Could This Work for Your Business?

If you are considering a revolving credit facility, business line of credit, or alternative to invoice finance, it is important to structure the right solution.

Every business is different, and the most suitable option will depend on your cash flow profile, sector and funding requirements.

Next Steps

If you would like to explore the options available:

  • Speak to a specialist
  • Request a quote

We will assess your requirements and help structure the most appropriate funding solution for your business.