How Wise Factoring arranged a rare three-month, single-customer £100,000 construction finance facility just weeks after the director’s previous company entered insolvency proceedings.

The Challenge: A Growing Business with a Recent Company Insolvency

A fast-growing groundworks contractor was preparing for a significant period of expansion. The company had annual turnover of approximately £1.6 million and around £2 million in potential new construction work on the horizon.

However, there was a complication.

One of the director’s previous companies had entered insolvency proceedings just weeks before the application for finance, in September 2026.

Although the groundworks business was actively trading and pursuing significant growth opportunities, the director’s recent insolvency history presented a serious challenge. Many mainstream lenders scrutinise previous company failures closely, particularly where the insolvency is this recent.

The business needed a funding provider prepared to assess its current trading position, customer relationships and future prospects, rather than relying solely on the director’s previous business history.

The Cash Flow Problem: Funding New Construction Contracts

Like many growing construction businesses, the contractor faced a familiar problem: the cost of delivering new projects would arise well before payment was received.

New contracts required expenditure on labour, plant, materials and mobilisation costs. Under the company’s construction payment arrangements, work could be completed for several weeks before an application for payment was submitted. Certification and subsequent payment terms could extend the overall cash conversion cycle considerably.

With significant new work potentially approaching, the company needed access to working capital, but without committing to an unnecessarily lengthy finance agreement.

When Wise Factoring first contacted the managing director, he explained that he had been planning to investigate funding options within the next few weeks. The timing was ideal.

How Wise Factoring Helped

Wise Factoring reviewed the company’s circumstances in full, including its trading performance, debtor position, construction contracts and the director’s previous business history.

Rather than submitting applications indiscriminately, we identified which specialist invoice finance providers were most likely to consider a case with these particular underwriting circumstances. That meant targeting lenders with genuine experience of construction businesses and complex director histories, not simply working through a list.

Following targeted discussions with selected providers, we identified a specialist lender prepared to consider the company’s circumstances and assess the proposed funding against an existing construction customer.

The Facility: A Three-Month, Single-Customer Arrangement

After further discussions, Wise Factoring secured an unusually flexible arrangement:

• Contract term: Three months
• Debtor coverage: Single construction customer
• Underwriting approach: Assessment of the current business and its trading opportunities alongside the director’s previous insolvency history
• Commitment: No requirement to factor the entire sales ledger or enter a conventional long-term agreement

Short-term factoring arrangements of this nature are relatively uncommon in the commercial finance market. This solution gave the contractor access to funding against qualifying construction receivables while avoiding an unnecessarily long contractual commitment.

The Outcome

The facility was successfully arranged in early November 2026.

Despite the director having been involved in another company that had entered insolvency proceedings only weeks earlier, the contractor secured a short-term working capital solution designed around its immediate requirements.

Rather than being turned away or pushed into a long-term agreement, the business obtained precisely the type of facility it needed: short-term, flexible and structured around a single construction customer.

Can You Get Invoice Finance After a Previous Company Insolvency?

A previous company insolvency does not automatically mean a director’s current business will be unable to obtain invoice finance.

Every lender has different underwriting criteria, and the circumstances surrounding an earlier business failure can be just as important as the insolvency itself. A director who is actively trading through a separate company with genuine contracts and customers may find that specialist providers are willing to assess the current position on its own merits.

Likewise, not every construction business needs a traditional 12-month or 24-month factoring agreement. In some circumstances, a specialist provider may be willing to consider short-term, selective funding against an individual customer.

Need Invoice Finance for a Construction Business?

Whether your business has a complicated financial history or you are simply looking for short-term funding against applications, payment certificates or invoices, Wise Factoring can help.

We work with a panel of specialist lenders to identify funding solutions that reflect each company’s circumstances, including more complex cases that may not fit conventional lending criteria.

Call us on 02921 900 000 or contact us for a confidential, no-obligation discussion.

Certain details have been adjusted or generalised to preserve client confidentiality. Facility terms were subject to the lender’s own assessment and approval.