From funding gap to business growth

Mercia Electrical approached Copper Swan after one of their funders unexpectedly reduced a credit facility, creating an immediate funding gap.

Their initial plan was to replace the reduced facility with an unsecured loan. But with the business growing quickly, there was an opportunity to look beyond a short-term fix and find a more sustainable funding solution that supported Mercia’s ambitions without putting unnecessary pressure on the business or its owners.

• An unexpected reduction in funding created an immediate cash flow issue.
• The proposed unsecured loan would only have addressed the immediate funding gap.
• Rapid growth was consuming more working capital than initially understood.
• Monthly loan repayments could have placed additional pressure on cash flow.
• Personal guarantees could have exposed family assets to unnecessary risk.
• The business needed a facility that would replace the reduced funding line and have the flexibility to support growth aspirations.

• Reviewed Mercia's complete funding and working capital requirements.
• Looked beyond the initial request for an unsecured loan to understand the underlying working capital cycle.
• Challenged the proposed funding strategy and identified invoice finance as a more sustainable solution.
• Reviewed the market and identified Bibby Financial Services as a suitable funding partner.
• Provided detailed financial reporting to give the lender a clear picture of Mercia's underlying viability.
• Worked openly with Mercia and Bibby to maintain confidence and secure additional support outside normal lending criteria.
• Helped create the financial stability needed for Mercia to continue to grow.