Helping a Fast-Growing Energy Provider Scale Efficiently: Case Study

Rapid growth can place significant pressure on capital and cash flow. This case study explores how Marex supported a fast-growing energy provider with a tailored commercial finance solution to enable scalable, sustainable growth. 

 

Overview

Founded in 2023, this energy provider rapidly established itself as a reliable supplier of simple, affordable, and transparent energy solutions for businesses. 

In its first year, the company generated £20 million in revenue and set a target of £50 million for the following year. To support this growth, the company required a financial services partner to develop a tailored credit facility that would support its expanding operations. 

 

Client challenges and financial pressures

• Growth outpaced capital reserves
  The business was expanding rapidly, but available funding was not keeping pace

• Upfront capital requirements
  Scaling required advance purchases of energy, which demanded significant upfront capital

• Liquidity constraints
  Cash flow limitations made it difficult to meet increasing customer demand

• Inflexible broker support
  Existing partners were unable to provide the necessary flexibility or speed

• Delayed onboarding
  New revenue opportunities were at risk due to delays in securing financial support

 

Strategy and proposed solution

The company partnered with Marex to secure a tailored credit facility, and just as importantly, a financial partner who truly understood the energy sector and the pace this business was moving at. 

With a clear understanding of the company’s broad business model, Marex quickly identified pressure points and what needed to happen to secure critical finance. 

Structured credit facility

A bespoke growth facility enabled the company to meet growing upfront energy costs.

Financial breathing space

Access to a flexible funding package allowed the company to navigate volatility and spikes in demand (and cash flow). 

An active role in closing the deal

Involved from the start, Marex were proactive when momentum stalled. 

By taking the time to understand the client’s bespoke needs and ambitions, Marex matched them with a financial partner who could meet both immediate and future funding challenges and support future growth. 

 

Results and outcomes

The credit facility delivered measurable outcomes:  

• Revenue growth
  Access to additional funding saw revenue growth jump from 15% to 40% month-on-month 

• Enhanced turnover
  Monthly turnover increased by 67% with further upside potential 

• Immediate savings
  £270,000 was saved through strategic energy hedging, including the early purchase of Renewable Obligation Certificates 

• Securing larger accounts
  Access to flexible credit facilities allowed the company to take on larger customers without waiting for cash payments to clear 

• Expansion of services
  Fully funded with immediate access to additional capital, the business is now expanding into gas and water. 

 

Key takeaways

• More than just a broker
  Marex worked closely with the client to address not only immediate but also future funding requirements in a proactive manner

• Micromanaging commercial negotiations
  Marex’s experience and hands-on approach ensured all parties were aligned, avoiding delays and misunderstandings

• Funding future growth
  After negotiating a flexible credit facility, the client could accommodate high double-digit monthly growth without fear of restrictive cash flow issues 

• Operational and strategic benefits
  Immediate cash savings, efficiency gains and enhanced financial strength facilitated the targeting of larger accounts

 

Conclusion

Marex worked with the client’s leadership and financial partners, to create a bespoke credit facility. The arrangement addressed immediate concerns while providing the opportunity to grow as the company expanded. 

After experiencing delays and mismatched offers from other brokers, the client was growing frustrated – concerned that slow progress and inflexible solutions were at odds with their growth ambitions. Marex’s deep understanding of the business, its challenges, and its potential helped unlock early momentum in negotiations. 

Safe in the knowledge that funding was available for growth, upfront energy payments and ongoing expansion – all while protecting cash flow – the client was able to facilitate growth in a structured and controlled manner. 

As the founder and managing director told us: