Founded in 2017, T G Commercial Projects (T G) is a young construction company based in South Wales, specialising in quality refurbishment works focussing on kitchens and bathrooms within council run residential projects. Having an excellent reputation for quality service and completion of jobs timely and accurately they have become well placed to secure key relationships with the likes of Swansea County Council.
The business was formed following the demise of a previous construction business that suffered a significant bad debt and was unable to continue trading. However, the directors, with firm commitments from both their clients and contractors seized the opportunity to start their business ensuring continuity of important long-term projects that were set to run over a period of 4 years.
With early growth and half year turnover forecast at £600k the business faced challenges from its cashflow as pressure grew to release sufficient working capital during the month to meet contractor wages and supplier obligations. This was compounded further by a rather inflexible approach from its existing funder.
With a significant proportion of their turnover application based, the business sought a more responsive and flexible funder and were introduced to the team at Advantedge Commercial Finance (Advantedge) upon recommendation by its advisors. Within a short period of time they were successful in securing a £250k invoice finance facility with a full sales ledger management service allowing the directors funding surety and freeing up valuable resources for them to push on with further growth.
As Ross Young, managing director of T G says: “We needed a source of short-term finance to provide us with the working capital we needed to pay our contractors and suppliers. The end of the month as with many SME’s can be a challenging time and our experience with our existing funder proved to be frustrating as we felt that they were not willing to work with us. Advantedge had a refreshing approach, making it easy to put a facility in place and with a greater understanding of our needs they have shown flexibility at crucial stages which has been key to maintaining a strong cashflow”.
As Nic Hanson, Regional Sales Manager of Advantedge commented: “With a strong reputation amongst County councils, we were assured that T&G would continue to grow within a robust business model. The funding facility we have provided allows them the flexibility to manage their working capital and provide them with a firm footing for growth.”
Ross concludes: “It was critical that we had a relationship with a funding partner who understood and worked with us. Having met the team at Advantedge, we genuinely felt that we could work well with them. Their client service is excellent, and they are so easy to work with. It means that we can focus on our future growth and are confident that our aspirations for the business are now a reality and are looking forward to making our plans happen.”