Tunbridge Wells-based electrical contracting company utilises flexible funding facility

A Tunbridge Wells-based electrical contracting company which installs IT cabling, is set to increase turnover to £4 million after securing a £400,000 factoring facility from Lloyds TSB Commercial Finance.

GCL provides information technology and electrical cabling systems to a UK wide client base, operating in many sectors including professional services, retail and wholesale.

Established in 1997, the business employs 30 people and has offices in Tunbridge Wells, London and Hildenborough, Kent.

The company has historically operated with a fixed overdraft facility, which in the current economic climate hasn’t been conducive to assisting with the cashflow position. With their plans for expansion and endeavour to gain new clients in a very challenging environment, GCL needed to explore the market for a suitable working capital facility capable of supporting its rapid growth.

Asset based finance provider, Lloyds TSB Commercial Finance provided the business with a factoring facility which is based on the company’s raised invoices and therefore accelerates the cash conversion cycle, providing a greater degree of flexibility that grows in-line with sales.

As a result of the £400,000 facility, the business is now in a strong position to capitalise on the growing demand for both IT and electrical cabling system solutions within all areas of business and enterprises.

Now GCL is on track to take turnover to £4 million in the next financial year, with sustained growth of 15 per cent per annum expected over the coming four years.

Phil Cottrell, Managing Director at GCL, said: “Many businesses in new and older offices have found the need to install high speed networks and electrical systems, necessitating the implementation of suitable cabling infrastructures to deliver these speeds and power as demands continue to evolve. This has seen a rise in the need for our services, which in turn required us re-evaluate our cashflow requirements.

“The factoring facility from Lloyds TSB Commercial Finance is a more efficient and flexible arrangement compared to our previous overdraft facility. This funding encourages growth and, as a result, we are in a strong position to expand.”

Ian Taylor, Regional Manager for Lloyds TSB Commercial Finance, said: “Investing in new technologies is at the forefront of many businesses’ development plans and as a result of our factoring facility, GCL is now in a robust trading position to capitalise on the growing market.

“Factoring is ideal for a company wishing to actively expand, like GCL, or for a firm simply requiring a cash flow solution to ease constraints as a result of awaiting payment from customers.

“As businesses increasingly rely on sophisticated technology, the industry continues to expand and I am confident Phil and his team will continue to grow and make the most of this burgeoning market.”

September 2011