Construction Subcontractor Cashflow Facility in the East Midlands
£85,000 · Ongoing · 2.5% over base + 0.75% service charge. A groundworks subcontractor in Nottingham was winning larger contracts but struggling with cashflow - main contractors typically paid on 60--90 day terms while the subcontractor's own labour.
The Client
Groundworks subcontractor in Nottingham
The Challenge
A groundworks subcontractor in Nottingham was winning larger contracts but struggling with cashflow - main contractors typically paid on 60--90 day terms while the subcontractor's own labour costs, plant hire, and materials were due weekly. Growth was effectively being throttled by the payment cycle.
Our Solution
Doulton arranged an invoice discounting facility against the subcontractor's certified applications for payment. Up to 85% of each certified application was advanced within 24 hours of submission, with the balance (less charges) released when the main contractor paid. The facility was confidential - clients were unaware of the arrangement.
The Outcome
Cashflow transformed. The business could now take on contracts three times larger than previously manageable. Turnover grew from £640,000 to £1.1m in the following twelve months as the cashflow constraint was removed. Key highlights: 85% advanced within 24 hours of certified application; Confidential facility - client relationships unaffected; Turnover grew from £640k to £1.1m - cashflow was the only constraint.