Background

Trade Window Systems (TWS) was established in 2008 and has a dedicated team boasting over 30 years’ experience in the home improvement industry.

The business prides itself on the supply and installation of high-quality window systems, doors, roof lights and conservatories for both commercial and domestic customers. Supported by a team of skilled craftspeople, they have an enviable reputation for expediency, quality, cost-effectiveness and fantastic customer service, with every client receiving a fully-customised approach.

TWS has experienced a good and sustainable level of trading over recent years and has very few creditors by nature. They hold a steady financial position and have not defaulted on any financial commitments since inception.

The challenge

Following a period of sustained growth, it was unfortunate for TWC to realise the significant impact of just one key customer going into liquidation. Suffering unpaid debts of £90,000, they had no choice but to seek investment to fill the capital gap, even though there was a chance of recouping some of that money in the future.

Having already invested a further £35,000 since September 2017, the directors were not in a position to finance this personally and so external finance was the obvious solution.

The requirement was for working capital investment of £35,000 to meet the immediate need of paying their own suppliers.

The Pegasus solution

Presented with an unexpected situation, and with urgency firmly at the forefront, TWS were introduced to Pegasus as a new customer. Given the time involved, they had already made the decision not to approach lenders directly.

The business proved its stability with the presentation of a sound set of figures and had held a good credit rating for a number of years. It was clear that TWS had simply found themselves in an unfortunate situation and so Pegasus was able to proceed with sourcing the best solution to meet their needs.

The main criteria for the finance was speed of delivery. Favourable terms were inevitably a key factor, but the need for a quick turnaround was essential.

Pegasus approached a number of non-bank lenders without luck. In short, providing the finance was going to be impossible in the timeframe required.

So, crowdfunding it was. And the business was rewarded on speed.

Backed by a personal guarantee from one of the directors, a package was offered for £35,000 on a 5-year repayment basis. Pegasus started proceedings the customer was fully-funded just eight days later.

Benefits for the customer

Pegasus Funding was able to resolve a situation which had the potential to threaten relationships between TWS and its suppliers, not to mention the reputational damage it could have caused.

By analysing the situation in context, and being focused on the viable finance solutions available, Pegasus delivered a cost-effective and timely solution to an urgent funding gap. Finance was secured for TWS in an extremely short space of time meaning they were able to pay suppliers without an interruption to their business or commitment to their customers.

Thanks to the sound nature of the business and their evident stability, TWS was an appealing prospect for the funders approached and, although there was limited choice of providers who could deliver in the timeframe, the solution achieved was favourable.

What TWS said

“We were extremely impressed by the positive attitude of the Pegasus team. They were very diplomatic throughout and maintained a clear focus on the job in hand. Their approach was realistic with a clear understanding of what was achievable given the criteria set.

We were faced with an unexpected dilemma that was out of our control. And, coupled with the urgency of the problem, we were left reliant upon the expertise of an outside advisor. 

Pegasus secured, in a short space of time, a more than viable solution which allowed us to protect the reputation of our business. Time was of the essence and their extensive network of investors meant that our situation never materialised into a problem.

The funding was released, as promised, with favourable terms that didn’t cost the earth.”

About Pegasus Funding

Pegasus Funding is a finance specialist that works with businesses at all stages of growth.

Pegasus takes pride in treating every client individually to achieve the best solution for them – with over 600 different sources of funds, including equity raising, debt funding and asset-backed finance, available.

The solutions provided, and the packages created, meet the needs of start-ups, expansions, contractions and turnarounds – as well as companies that are no longer supported by their banks. Pegasus goes the extra mile to secure the very best deals and works to obtain a minimum of two offers for each client, creating competition between the lenders.

From a short-term quick fix to long-term funding for growth, no two deals are ever the same. Whether you’re looking for invoice factoring or private equity investment, Pegasus offers unrivalled service and attention.

Pegasus Funding is authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.

Contact us today to find how we can progress your financial journey.