An asset that has highly appreciated and owned in joint names can cause a challenge when it comes to IHT planning. Here we take a look at some careful IHT planning we assisted a client with in relation to a jointly owned asset.
Unlocking Growth for a £6m Construction Business with Invoice Finance
Business Advisory
Our client, a well-established construction business with a strong reputation and £6m turnover, was facing a familiar challenge in the construction sector:
Cash flow constraints caused by long payment terms.
They were waiting up to 90 days for client payments while needing to pay subcontractors, staff, and suppliers every 30 days.
With only an inflexible overdraft facility and limited access to affordable lending, growth was stalling and short-term loan options came with eye-watering APRs.
The Challenge
The client had ambitious plans to scale the business in preparation for a future exit.
But with high turnover and low margins, even minor payment delays posed significant risk.
A single missed payment could jeopardise payroll or damage supplier relationships.
Traditional lenders weren’t an option.
High street banks were reluctant to extend overdrafts or provide sector-specific support, and few lenders were willing to fund construction-based invoice discounting.
How We Helped
Thanks to our extended service offering, we introduced the client to our corporate finance specialists within Xeinadin.
Working collaboratively with the client and our team, we reviewed payment cycles, modelled future growth, and identified a strategic funding solution.
Together, we:
- Explored and structured an invoice discounting facility worth £350,000.
- Identified one of the few lenders in the market open to financing construction invoices.
- Prepared cash flow forecasts, management accounts, and financial modelling to demonstrate serviceability.
- Highlighted the client’s strong financial position—95% of their invoices are approved and paid, and they hold minimal debt on their trading premises.
- Created a comprehensive lender-ready funding proposal to maximise the chances of approval.
The Outcome
The company now has access to a rolling £350k invoice discounting facility, giving them the flexibility to:
- Pay contractors and suppliers on time, every time.
- Take on larger contracts without cash flow bottlenecks.
They only pay interest on the funds used, and while the service fee initially raised questions, we helped them assess the true cost versus other lending options—demonstrating the flexibility, control, and scalability of invoice finance.
The Bigger Picture
With this facility in place, the company is now positioned to scale confidently—from £6m to a projected £15m turnover.
Crucially, they can grow without compromising their day-to-day operations, preserving both their reputation and their relationships.
Getting in touch with us
If you would like to talk to us about how we can assist you in your business journey please take the next step and request a call back or call us on 01634 731390
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