Securing £170,000 in Business Funding Despite Lending Challenges

The Challenge

A construction company approached Hammond Rock looking to refinance existing borrowing and strengthen its cash flow while continuing to deliver projects and take on new contracts.

The business had secured significant funding over the previous 12 months to support expansion, including investing in additional equipment and meeting the working capital demands of larger projects. Although the company remained financially healthy and continued to win new work, the level of recent borrowing, combined with historic payment issues that had since been resolved, meant many lenders viewed the application as higher risk.

The client’s primary objective was to reduce monthly repayments on existing borrowing while ensuring there was sufficient working capital to fund labour, materials and day-to-day operating costs.

Our Approach

Rather than relying on a single lender, we approached multiple funding providers to identify the most suitable solution. Throughout the process, we worked closely with lenders to understand their lending criteria, responded to underwriting queries and managed the client’s expectations as each credit decision progressed.

Although a longer-term refinance was initially explored, lenders ultimately took a cautious approach due to:

• The level of recent borrowing.
• Historic missed payments on existing facilities (which had since been brought up to date).
• Recent bank statement activity not yet fully reflecting the growth shown in the latest accounts.

Rather than reaching a dead end, we continued negotiating with lenders to secure the best possible outcome.

The Solution

By structuring the funding in two stages, we successfully secured:

• £70,000 of short-term working capital to help fund ongoing projects and day-to-day cash flow.
• £100,000 to refinance part of the existing borrowing and strengthen the company’s overall funding position.

Both facilities were completed in quick succession, with careful coordination to ensure all lender requirements were met and funds were released without unnecessary delays.

The Outcome

In total, Hammond Rock secured £170,000 of funding for the client.

Despite a complex lending profile and a number of underwriting challenges, the construction company obtained the funding it needed to improve cash flow, continue delivering projects and support future growth.

Our Value

Every funding application is different. In this case, success came from understanding each lender’s lending criteria, managing the process proactively and adapting the strategy as new information emerged.

By maintaining close communication with both the client and lenders throughout the process, we were able to deliver a practical funding solution where a straightforward refinance alone was not available.

Funding Secured: £170,000
Sector: Construction
Purpose: Working capital and partial refinance of existing business borrowing