A second generation Virginia based family owned construction company was seeking working capital to complete a project.
After reviewing their situation, we decided that an equipment based loan was their best option. They owned an impressive inventory of equipment that was free and clear. We used it to secure the loan. Previously, the owners had been declined by their bank because they didn’t have perfect credit.
Challenge: The owners didn’t have perfect credit that traditional lenders required.
Solution: Despite having less than perfect credit, we got them approved for $140,000 using free and clear equipment as collateral. The lender wasn’t concerned about their credit. The focus was on the equity in the equipment that was used as a security.
As a result of the funding, they completed their project on time, while having additional working capital for slow cycles..
Loan Product: Equipment Based Financing
The family owned two other businesses. Once they saw we were able to secure the financing for their construction company, they asked for assistance in obtaining funding for their other two businesses – a rock quarry and heating and cooling company.
Rock Quarry: The family owned the land free and clear where the quarry was located. The state purchased gravel from them on a regular basis; however, the company was paid on a net 60 basis. This means the business had to complete the work and wait for 60 days before they were paid. This put them in a cash crunch. Because they had strong contracts, the lender approved them for $115,000.
Challenge: The business wasn’t paid by the state until 60 days after they completed the work. This put the company in a financial squeeze.
Solution: They were approved for $115,000 based on their positive cash flow. As a result, the business successfully completed the contract, made their payroll commitments and set aside working capital for their slow cycle.
Loan Product: Merchant Cash Advance
Heating & Cooling: This company was owned by the daughter and her husband. They operated a successful heating and cooling business that wanted to expand into a new territory which required an infusion of working capital to make that happen.
Challenge: The owners didn’t have perfect credit which meant they would be declined by a traditional bank.
Solution: They were approved for $78,000 based on their prior success and strong cash flow. As a result, the owners successfully expanded into a new area along with working capital to set aside for an emergency fund.
Loan Product: Merchant Cash Advance
Conclusion: Facing credit challenges shouldn’t hinder your business’s growth. At Fund & Thrive, we believe in turning obstacles into opportunities. Discover how we can tailor a funding solution that fits your unique needs.
