“The solution provided by InvoiceFair was like nothing in the market – it was tailored to our working capital and growth requirements. This gave us the confidence to do what we do best as a leading provider of world class technical services on high end projects for large MNC’s and really scale our business to the next level.”
Based in Maynooth, Co. Kildare, Secto is a fast growing Infrastructure build and engineering solutions company focussed on 3 core areas: Telecoms, Utilities and Technical Services.
Secto offer a range of services to the Data Centre market including Critical Infrastructure Commissioning, Rack & Server installation, Operations & Maintenance.
Secto is a leading Irish infrastructure build and engineering solutions company delivering integrated planning, design, build and commissioning of advanced communications networks, civil engineering and utilities projects across a range of Sectors and customers.
Secto all provides world class technical services, particularly in the Data Centre sector, where they can deliver facilities management, maintenance, commissioning, design and installation of projects. Other key sectors include Pharma, Semi-Conductor Facilities and Aviation.
Secto have been experiencing significant growth over the past few years and are working on large scale infrastructure projects for large MNC’s like Intel as well as government agencies.
Secto had two funding challenges to resolve:
Working Capital: Address timing issues on Data Centre installation work
Growth Capital: fund their ambitious scaling plans
Secto provide highly skilled labour to Intel on these data center projects, however, Secto pay their staff in advance of repayment from Intel, causing a timing issue from a working capital perspective. As the project schedule ramped up, the requirement for labour increased, as did the working capital requirement.
Secto were also undertaking a scaling programme and with new projects taking place, they required growth capital to fuel these plans. Having the working capital in place to fund the beginning of these large-scale projects was a fundamental element in the success of any future scaling.
Struggling to find a suitable solution from traditional lenders, Secto approached InvoiceFair seeking an innovative growth financing solution that would allow the business to expand, while doing so under efficient and cost effect funding terms.
What type of financing would work best for this labour intensive business with blue-chip contracts with large MNC’s in the Telecoms sector? The answer was to leverage their monthly completed and future worksheets for their staff in advance of payment from the main contractor to assist with their working capital and growth requirements.
InvoiceFair structured an innovative invoice discounting solution, where in addition to leveraging funding from their debtor book, Secto could leverage future income from their contracts with Intel and other MNC’s in order to fuel their growth and fund their future.
Secto could leverage 90% of work complete against approved timesheets in conjunction with 70% of future monthly cashflows from contracted position in order fund growth objectives and put their future in their own hands.