Pathfinder builds strong cashflow foundation for MCO’s growth

MCO Building Contractors’ North Star Objectives

Transform cash flow rapidly – To successfully bridge the gap between taking on new projects and payment receipt.

Extend geographical reach – To expand into new territories and onboard new clients, including those  with extended payment terms.

Invest in the future – To facilitate the purchase of essential tools, equipment, and company vans.

About MCO Building Contractors

Incorporated in 2020 and headquartered in Brighton, MCO Building Contractors specialises in providing top-of-the-line home improvement and construction services. Originally focussed on roofing and carpentry, the company has since expanded its offerings, becoming a trusted provider of professional building services across West Sussex. The company’s customer portfolio comprises 70% commercial projects dedicated to insurance and lettings agencies, with the remaining 30% related to domestic projects.

Exploring the Opportunity 

Emily Bradbury, Business Development Manager, MCO Building Contractors Ltd, outlined the cash flow challenge facing the business as a result of rapid growth:

“Our letting insurance work operates on 60 to 90 day payment terms. That means we could spend 30 days on-site, purchasing materials, paying for labour, followed by another 30 days for snagging and case closure. Subsequently, the 60-day payment period begins. Essentially, from the day we commence a job, we anticipate not receiving payment for 120 days. As our business grows and we win new orders, this payment gap only gets wider.”

Emily elaborated, “Pathfinder understood the urgency of our cash flow issue and expedited the entire process within just ten working days. They expertly paired us with compatible lenders, identifying 4Syte Limited as the perfect fit for our specific requirements. Setting up our invoicing software led to receiving our first payment last week, and another payment is due today, which is fantastic progress.”

Commenting on the deal introduced by Pathfinder, Samantha Wilson, Regional Managing Director at 4Syte Limited, remarked: “Pathfinder is unique for being able to present lenders with a wealth of valuable information up front in a clear, focussed, and easily accessible format. For a complex construction deal such as this, Pathfinder’s insights form a robust foundation, allowing us to ask more probing questions at an earlier stage, conduct highly productive meetings, and get comfortable with the transaction, facilitating a swift turnaround. Alongside their advanced technology, the industry experience that James Bingham and Leanne Dawson bring is invaluable, giving them a true lender’s perspective.”

Discovering the Outcome

Emily added, “As we become used to the system and start receiving payments more regularly, we have the opportunity to venture further into London and consider taking on additional clients with extended payment terms. We’ve already onboarded several clients with 90-day payment terms, something we simply couldn’t have considered before due to potential cash flow constraints.”

She continued, “The invoice finance facility from Pathfinder has provided us with the capacity to expand. Now, we can invest in new tools and access equipment rather than continually renting them, which has been costly. We’re confident that the new funding package will give us a platform to achieve the next stage of growth.”

James Bingham, Founding Director of Pathfinder Invoice Finance, commented: “Understanding the heartbeat of businesses is at the core of what we do at Pathfinder. MCO Building Contractors’ journey exemplifies the transformative power of addressing cash flow constraints through the power of invoice finance. Our commitment lies in enabling growth, empowering companies like MCO to expand their horizons, unlock potential, and shape their own success stories. It’s about developing an ecosystem where businesses and lenders thrive, creating a win-win scenario for all stakeholders involved.”