Client Story: Mercia Electrical

About Mercia Electrical

Founded in 2020, Mercia Electrical is an electrical contractor based in Derby, specialising in solar PV and EV charging installations. Working with both domestic and commercial customers across the UK, the company provides end-to-end renewable energy solutions that help customers reduce energy costs and embrace more sustainable energy sources.

Since launching, Mercia Electrical has grown rapidly, expanding from its original focus on EV charging into the solar sector as demand for renewable energy continues to increase. Today, the business delivers projects ranging from domestic installations through to large commercial contracts.

Challenge

As Mercia Electrical grew, so did the scale of the projects it was delivering. Winning more work with major contractors opened up new opportunities, but it also created pressure on cashflow.

Like many businesses operating in the construction sector, Mercia Electrical faced lengthy payment terms of up to 60 days. As work volumes increased, so did the pressure on cashflow, with materials, suppliers and wages needing to be paid long before customer payments were received.

Managing Director, Matt Ede, explains:

"Last year we achieved more than £3 million turnover and started doing more and more work with tier one contractors. But with payment terms ranging from 30 to 60 days, financing that growth became my biggest challenge."

Solution

Recognising the need for a funding solution that could grow alongside the business, Mercia Electrical partnered with Bibby Financial Services. Following discussions about the company's plans and future ambitions, BFS provided an invoice finance facility designed to help the business access cash tied up in unpaid invoices.

For Mercia Electrical, the key benefit was flexibility. As sales increased, available funding increased too, helping the business maintain healthy cashflow while continuing to invest in growth.

Amanda Sills, Relationship Manager at Bibby Financial Services said:

"Mercia Electrical has built a strong reputation in a fast-growing sector and has ambitious plans for the future. Our invoice finance facility gives the business access to working capital as it grows, helping Matt and the team take on larger projects with confidence while maintaining healthy cashflow."

This flexible funding model enables Mercia Electrical to access funds from completed work sooner, helping the company pay suppliers and employees on time while continuing to take on new contracts.

Working with Bibby Financial Services

For Mercia Electrical, the relationship with BFS extends beyond funding. Operating in a sector with unique cashflow pressures, the business wanted to work with a finance provider that understood the challenges faced by construction companies.

After meeting the BFS team, Mercia Electrical found a partner that understood its business model and growth ambitions.

"When I found out that BFS specialised in working with construction companies, we had several meetings and discussions about the business and it became apparent that they were the right people to work with. Since then, the relationship has built from strength to strength." 

Impact

With stronger cashflow and ongoing support from BFS, Mercia Electrical has been able to continue its growth journey with confidence.

The business has expanded its team, secured larger contracts and strengthened its position within the growing renewable energy market. Invoice finance has provided the confidence to pursue opportunities that would previously have been out of reach.

Today, Mercia Electrical is planning its next phase of growth, including larger premises and continued expansion towards its long-term turnover ambitions.

Looking back on the company's growth, Matt said:

"The support of Bibby has allowed me to have the confidence to go out there and tender for larger projects than I would have done previously. We know that number is going to continue to increase and it's great to see the success we're achieving."