Business Capital delivers $1MM working capital line of credit to California-based aggregate provider.
The client, located in San Diego, is one of the fastest growing reliable aggregate supplier and construction trucking companies, operating a large fleet of trucks servicing primarily the Southern California area. The company specializes in the wholesale supply, hauling and delivery of a wide range of competitively priced aggregate, landscape and building materials and provides hazardous soil profiling, transport and disposal services.
Although the company has a history of profitability and carries no bank debt, the downturn in the construction industry combined with the amount of time it takes to complete a project and get paid, created an increasing constraint on liquidity. Without cash flow, the company was unable to take advantage of a backlog of business and competitive pricing with their vendors, purchase new equipment or hire workers. Due to the industry and unreliability in AR, they had been unable to find a lender to provide them with the needed capital.
Business Capital developed an understanding of the client’s situation and was able to deliver a line of credit to immediately maximize working capital and liquidity. The client’s short term needs were addressed, allowing them to clean up the payables, decrease financing costs, eliminate late charges and take advantage of early-pay discounts. Without the daily liquidity constraints, the client can focus on their long term business growth and profitability goals.