Full Service Contractor & Reconstruction Company

$5.5M Restructuring & $2M Accounts Receivable Line of Credit

The Client

This family owned Company is one of the largest contractors in the Western US and has been in business for over 30 years.  They provide repair, renovation, maintenance and upgrade services primarily for multi-family and commercial buildings and hold multiple specialty trade licenses, allowing them to perform comprehensive construction solutions without having to retain subcontractors.

The Situation

Due to the economic downturn, which hit the building and construction industry particularly hard, traditional revenue sources had been impacted annually and their incumbent bank had frozen the company’s credit line. Several outside consultants and law firms had failed to achieve a turnaround or find additional funding needed to alleviate the liquidity shortage.

The Solution

Business Capital developed a totally unique restructuring of the existing loan which mutually benefitted the client and bank. The firm articulated this new capital structure and future plan for profitability to targeted, specialized lending partners and was effective in providing full repayment to the bank and additional working capital to the company secured by progress and non-progress billed invoices. This will allow the client to move forward on stronger footing and return to profitability. Business Capital’s distinctive ability to provide highly customized and innovative restructuring and recapitalization solutions sets them apart from other firms and was central to the client’s successful turnaround.

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