“The solution provided by InvoiceFair was perfect for our unique set of circumstances. Their understanding of the market was refreshing and the way the solution was structured was something we hadn’t seen before. They are playing a key role in our growth plans.”
Meritcom is an Irish & UK based company who’ve been in operation for over 20 years. They are a leading provider of Structured Cabling Solutions, TV Systems, Wireless, Infrared, Satellite, Interactive Whiteboards, Telephone Systems and Audio-Visual Systems. Meritcom provide sub-contracting services on large scale Data Centre projects across Europe for some of the world’s largest companies.
Meritcom is an Irish & UK based company who have been in operation for over 20 years. They are a leading provider of Structured Cabling Solutions, TV Systems, Wireless, Infrared, Satellite, Interactive Whiteboards, Telephone Systems and Audio-Visual Systems.
The winning of a significant new contract in the sector had resulted in a requirement to build a cashflow strategy to meet the demands of the additional project.
Meritcom has been experiencing significant growth over the past number of years and had been successful in winning a multi-million euro contract to provide sub-contracting services for a large-scale Data Centre project in Denmark for one of the world largest social media companies.
They had incorporated new trading entities in Europe to facilitate this contract in conjunction with their well-established business in Ireland and the UK. This meant identifying a funding partner who understood their business and the working capital requirements of their global operations and data centre projects. InvoiceFair’s knowledge of the sector meant they recognised the standing of Meritcom within the sector and the quality of the clients they worked with.
Meritcom were providing highly skilled workers for the Danish project for services such as power and electrical works during the build phase of the Data Centre site expansion.
Initial set up costs on the project required capital prior to the beginning of the payment cycle from the main contractor. As the project ramped up, the requirement for labour also increased as did the working capital requirements with repayments from the primary contractor operating on 30-day cycles, with staff requiring weekly payments. This created a cashflow gap.
Unable to find a suitable solution from traditional lenders, the answer was for Meritcom to use InvoiceFair’s innovative growth funding model to leverage their purchase orders and their monthly complete worksheets for their staff in advance of payment from the contractor to assist with their working capital requirement. Using future earnings in this manner is a unique feature in the market.
InvoiceFair structured a Purchase Order and Selective Invoice Financing Solution for Meritcom’s European business, which allowed Meritcom to access growth funding as they required it over the course of the contract.
Our solution allowed them to leverage 70% of the purchase order in the initial set up phase, to assist with the capital costs required at the commencement of the project and 90% of completed worksheets thereafter to provide working capital as they project moved through the design and build phases.