Momenta Finance provides £200k working capital facility to BMS contractor

Momenta Finance has provided a £200,000 unsecured working capital facility to a UK building controls contractor, enabling the business to mobilise around £1 million of secured and pipeline projects.

The client specialises in Building Management Systems (BMS) and controls, working with commercial property owners and facilities management providers to improve the efficiency of heating, cooling, ventilation and other building systems.

With several projects due to begin at the same time, the contractor required additional working capital to meet upfront costs before receiving staged payments from customers.

The business typically needs to fund materials, specialist controls equipment, labour, subcontractors and design and programming work before invoices are paid. Customer payments can then be received against milestones or certified valuations on terms of between 30 and 90 days, with retentions potentially held until practical completion.

Momenta Finance provided a £200,000 unsecured business loan over 60 months at an interest rate of 9.11%. The facility was introduced by Richard Selvey-Clinton, Director at Oakmead Finance, and handled by James Sharpe, Business Development Manager at Momenta Finance.

The funding will allow the contractor to mobilise multiple projects simultaneously rather than waiting for payments from one project before beginning another.

It will also provide a contingency buffer to help prevent costs associated with individual projects from delaying work elsewhere in the company’s pipeline. The upfront expenditure is expected to be recovered through staged client payments over the following six months.

Richard Selvey-Clinton, Director at Oakmead Finance, said: “James is (genuinely) the best BDM I work with, across all lenders. He is responsive, proactive, commercially minded and a very good communicator.

“It is so refreshing to have such a high level of support in getting deals through a process and to completion.”

The transaction follows Momenta Finance’s focus on providing working capital to businesses where expenditure can precede customer payments, with the facility structured around the contractor’s project pipeline and cash-flow requirements.