Access to working capital is critical for businesses operating in construction, haulage, and aggregates.

In this case study, we explain how we structured a £500,000 revolving credit facility for a growing aggregates business, using the strength of its debtor book to support ongoing operations and growth.

The Situation: Strong Demand, Cash Flow Pressure

The business operated in the aggregates and haulage sector, supplying materials and services across multiple construction projects.

With strong levels of activity came a familiar challenge:

  • High volumes of monthly invoicing
  • Payment terms stretching cash flow
  • Ongoing operational costs (fuel, wages, suppliers)

Despite solid turnover, a large amount of cash was tied up in unpaid invoices.

The Client’s Preference

When we first spoke, the client had already considered different funding options.

Invoice finance was discussed, but in this case, it wasn’t the right fit operationally.

The business raised a practical concern:

They simply didn’t have the time to upload and manage a high volume of invoices each month.

With dozens (sometimes hundreds) of invoices being raised, they wanted a solution that:

  • Worked alongside their existing processes
  • Required minimal day-to-day admin
  • Allowed them to stay focused on running the business
  • Remained fully confidential

A Key Complexity: Contra Trading

Another important factor was the structure of the business.

Like many companies in this sector, they operated across multiple related entities, which resulted in:

  • Intercompany trading
  • The same businesses appearing as both debtors and creditors
  • A portion of the ledger that wasn’t suitable for funding

This is known as contra trading and it needs to be carefully handled when structuring a facility.

The Solution: A Revolving Credit Facility Based on the Debtor Book

Rather than using a traditional structure, we arranged a revolving credit facility linked to the strength of the debtor book.

This provided:

  • A funding line of £500,000
  • Availability based on the average value of receivables
  • A fully confidential structure (no customer awareness)
  • No requirement to upload individual invoices
  • Flexible drawdown, similar to a revolving credit facility

No Personal Guarantee Required!

One of the standout features of this deal:

The £500,000 facility was secured with NO personal guarantee.

Instead, the structure relied on:

  • The strength of the business
  • A proven, profitable track record
  • A high-quality debtor book

Security was taken via a debenture and standard business warranty, rather than personal guarantees from the directors.

This is only possible where a business demonstrates:

  • Strong turnover
  • Consistent profitability
  • A reliable debtor base

But where it is achievable, it provides significant peace of mind for business owners.

How the Facility Was Structured

To ensure the facility worked effectively, we:

  • Identified the fundable debtor book
  • Excluded contra accounts and non-eligible balances
  • Assessed overall trading performance and stability
  • Structured funding around sustainable receivables

Even after removing non-fundable elements, the facility comfortably supported a £500,000 limit.

The Process

Although simple to use, the facility is underwritten thoroughly.

The process included:

  • Initial financial assessment
  • Review of the debtor book
  • Operational analysis of the business
  • On-site visit to understand how the business functions
  • Structuring across group entities where required

Once approved:

  • A relationship manager was introduced
  • The facility was implemented quickly
  • Funds were available within days

Ongoing Requirements

One of the biggest advantages of this structure is the simplicity.

The business only needs to provide:

  • Monthly sales ledger
  • Monthly purchase ledger

No invoice uploads
No ongoing reconciliations
No customer interaction

The Outcome

  • £500,000 revolving credit facility secured
  • No personal guarantee required
  • Delivered ahead of a key deadline
  • Immediate improvement in cash flow
  • Minimal admin for the business
  • Fully confidential structure maintained

The client was extremely pleased with the outcome, particularly the flexibility, simplicity, and risk profile.

When This Type of Facility Works Well

This type of funding can be particularly effective for businesses that:

  • Generate regular monthly invoicing
  • Have a strong and diverse debtor book
  • Are established and profitable
  • Want a flexible funding solution
  • Prefer a low-admin structure
  • Value confidentiality

It is commonly used in sectors such as:

  • Aggregates and haulage
  • Construction supply
  • Recruitment
  • Wholesale and distribution

Key Takeaway

With the right structure, your debtor book can support significant funding, without adding operational complexity or personal risk.

Looking to Unlock Working Capital?

If your business is generating strong sales but cash flow is being held back by payment terms, there may be more flexible options available than you realise.

Speak to a Specialist

We’ll help you structure the right solution based on how your business actually operates.

  • This is a real UK case study based on a completed transaction in March 2026.