A family-run construction firm

Davies Contractors are a family-run construction firm based in Newport, founded by Anthony Davies in 2015. Since launching the business, Anthony has grown the company into one of the leading construction firms in Wales and the West Midlands, responsible for providing vital maintenance services to the area's largest social housing associations. Their partnership with Lenkie has given them access to additional funding firepower to grow their team, purchase supplies and equipment, and help their customers keep the lights on (quite literally in this case).

The cashflow gap

Taking on work in construction often requires capital-intensive investment at the start of the project, with payment deferred for many months until the work is complete. Outside of the capital investment required to buy supplies, with construction staff in high demand, it’s important to ensure that payroll is consistent and on time. This means that in order to grow, additional funding lines are often essential to fuel cash flow within the business. However, even established construction businesses still face challenges accessing traditional finance.

Banks often have incredibly restrictive underwriting policies meaning ambitious, high-growth construction businesses can face an incredibly long path to access funding from traditional lenders. On the other hand, invoice finance providers will often ask construction firms to hand over control of their entire accounts receivable and accounts payable processes, damaging relationships with both customers and suppliers. 

How Lenkie helped 

Anthony knew that traditional lenders were not going to work for his business, and so looked to alternative solutions to help them fund cash flow as they scaled the business. Lenkie’s facility, which allows businesses to pay suppliers immediately and spread repayment over the course of 1 to 12 months, was a perfect fit. With their facility in place since August 2023, they’ve been able to grow the team to over 100 people, purchase new vans and equipment, and ultimately take on more work. Collectively, Davies is responsible for maintaining thousands of properties. 

All of this was achieved without having to relinquish any control whatsoever over their business to a third-party finance provider. Davies have now firmly established themselves as one of the most reliable and effective construction and maintenance partners in South Wales. 

Testimonials:

Where next    

Working with Lenkie has provided Anthony and his team with the headspace and fuel they’ve needed to focus on growing Davies Contractors into a leading construction firm. With ambitions to continue scaling their practice throughout the UK, Davies sees Lenkie’s facility as an essential engine for future growth.