PiLON secures £3.5m funding from Arbuthnot Commercial ABL
Arbuthnot Commercial Asset Based Lending (ABL) has provided fast-growth social housing renovations and maintenance specialists, PiLON Ltd. (PiLON) with a £3.5m funding package to drive further business expansion.
Over the past two years, PiLON has seen its revenues more than double, putting significant pressure on an existing funding facility that was no longer able to keep pace with the intensity of customer demand. Arbuthnot Commercial ABL was able to structure a working capital facility, comprising a £3m revolving receivables finance line which would enable the business to expand. The lender also helped PiLON secure a £500,000 Coronavirus Business Interruption Loan Scheme (CBILS) facility.
Established over 15 years ago, PiLON primarily works in both social housing and education sectors, providing construction, repairs, and maintenance for many local authorities and housing associations. Operating predominantly in London and the South East, PiLON’s team offers a range of services, including the delivery of reactive repairs, planned maintenance, integrated asset management and compliance. The business has achieved strong revenue growth as a result of introducing smart technology such as PiLON360, an asset tagging service that enhances client data, creating a lifecycle analysis and detailed maintenance plan.
Madalina Mandoc, Finance Director, PiLON Ltd said: “We are very pleased to have made the move to Arbuthnot Commercial ABL. We have a longstanding relationship with their team, and they understand the nuances of the construction industry extremely well. This has meant that, in addition to providing funding against the value of our invoices, they were also able to advance against contractual debt in the form of certified applications for payment. Arbuthnot’s new facility provided us with a 10% higher prepayment level than our previous invoice discounting line, which for us equates to a 6-figure sum. We were constantly hitting the cap of our previous facility; Arbuthnot has succeeded in unlocking levels of liquidity commensurate with our growth ambitions.”
Andrew Rutherford, Commercial Director, Arbuthnot Commercial ABL, said: “We have known the management team at PiLON for 12 years and are delighted to support them with a working capital facility which will provide the business with greater flexibility as it powers ahead. The additional CBILS term loan provides additional headroom, enabling the business to emerge with confidence, while mitigating the potential impact of a COVID-19 second wave.”