BAX Construction secures multi-lender funding to support growth

West Midlands-based BAX Construction has secured a six-figure funding package from four regional lenders to provide additional working capital as it takes on larger local authority and commercial projects.

The package includes an increased invoice discounting facility from FlexABL alongside debt funding from the Midlands Engine Investment Fund II through fund managers Frontier Development Capital and BCRS Business Loans, and a term loan from ART Business Loans.

The funding will support BAX Construction, led by Managing Director Benedict Anslow, following a period of rapid expansion. The company has recently secured seven-figure contracts with Wolverhampton and Sandwell Councils to improve social housing.

BAX now employs 20 staff and works with around 100 contractors. Turnover has increased eight-fold over the past five years to more than £7.5 million, with the business targeting £10 million over the next year.

Founded in 2020, BAX provides refurbishment, maintenance and construction services, specialising in local authority and social housing projects as well as commercial refurbishment and urban regeneration.

The company is also leading the regeneration of Wolverhampton’s former Express & Star building, where it has developed Fused, a wellbeing centre housing 14 independent businesses.

Lenders collaborate on funding package

The relationship with FlexABL began with an invoice discounting facility introduced by Select Business Finance. As BAX’s working capital requirements increased, FlexABL agreed to raise the facility from £300,000 to £500,000.

Additional term funding was provided by ART Business Loans, BCRS Business Loans and Frontier Development Capital.

Anslow said: “Our growth has been exponential and this funding gives us the backing to keep pushing that further. Cash flow is everything. You can be as profitable as you want as a company, but you need the capital to grow.”

Chris Jones, owner of Select Business Finance, said the scale of BAX’s growth meant its funding requirements could not be met by a single provider.

“This is a fantastic example of collaboration. We couldn’t have done it without everyone involved talking to each other and having a real desire to make it work,” he said.

The deal was structured through collaboration between members of Midlands SME Finance, a network of regionally focused lenders that work together on funding requirements that may require multiple forms of finance.

“This was a great example of collaboration across the Midlands SME Finance community, working alongside ART Business Loans, BCRS Business Loans and Frontier Development Capital to put the right finance structure in place for Benedict and the business to thrive.”

David Tindall, Senior Investment Manager at the British Business Bank, said the funding would help BAX respond to demand and continue delivering housing and commercial projects across the region.

“BAX Construction is a great example of the type of ambitious, growing business that the Midlands Engine Investment Fund II is designed to support,” he added.