Construction finance facility for solar panel installer
A solar panel installation company has built a strong reputation in the residential market and recently expanded into commercial projects. With a growing portfolio of key B2B clients, the business is now focused on accelerating its commercial growth while maintaining its residential operations.
The shift toward higher-value commercial contracts has introduced new challenges, particularly around cash flow. These projects typically operate on 30-day payment terms and are governed by JCT contracts, often including retentions. As a result, the business faced significant upfront material costs, which must be covered well before payment is received.
The challenge
Despite a strong order book and growing demand, the business was looking to enhance its delivery to an expanded client base and so looking to improve cash flow. With no finance facilities in place, they were reliant on internal resources to fund additional materials and labour – an increasingly unsustainable position as project values rose.
The company initially approached their bank for support but after several months of discussions, the application did not progress. The bank highlighted the business’s limited track record in commercial installations at that stage, given its historic residential focus.
Undeterred, the business explored alternative funding options and approached two other providers but suitable facilities were not identified, in part due to supply chain concerns. After months of frustration and no workable funding solution secured, the business turned to Hilton-Baird Financial Solutions for support.
The solution
The team at Hilton-Baird took the time to understand the business’s structure, trading model and the specific challenges they had faced with previous funders. We ensured all potential lenders were fully briefed on the reasons for past concerns and the steps the business had taken to mitigate any perceived risks.
Drawing on our extensive sector expertise, we introduced three funders who were well-positioned to meet the business’s requirements. After reviewing the options, the client selected a provider offering a £300,000 Construction Finance facility.
This facility was tailored to the business’s needs, providing access to working capital against contractual debt and accommodating the nuances of JCT contracts and retentions.
The result
The new funding line has transformed the business’s ability to take on and deliver commercial projects. With the Construction Finance facility in place, the company can now cover upfront material costs and manage cash flow more effectively while waiting for client payments.
The facility has not only unlocked immediate working capital but also restored confidence in the business’s ability to scale its commercial operations without compromising on service delivery or financial stability.
To explore the options available to your business, or to compare any existing facilities against the wider market, contact our team on 0800 9774833 or request a call back.
