Progress Claim Finance
Industry: Construction – Electrical Contracting
Business Stage: Growth
- A business established for two years provided electrical process control units to the air conditioning and refrigeration industry
- These units were built and installed on a project basis, and as a result customers were billed via progress claims invoicing
- The business had rapidly expanded due to its success in winning a number of new contracts but was becoming increasingly constrained by a lack of working capital to fund this growth
- Its finance broker approached the debtor finance market without success due to the nature of the invoices (being progress claims)
Hermes provided a Progress Claim Finance Facility, advancing funds against the value of the claims as they were raised.
The owner of the business was able to pursue further growth having the confidence to continue tendering for new work, knowing Hermes financial backing was in place.