BIZCAP Completes $2 Million Restructuring, Recap for Contractor
Business Capital (BIZCAP) has secured a $2 million accounts receivable credit facility for a contractor in the Western U.S. The new line of credit is secured by progress and non-progress billed invoices and will refinance an existing bank loan and provide the company with additional working capital.
The client, a 30-year old, family-owned company, provides repair, renovation, maintenance and upgrade services for multi-family and commercial buildings. Because it holds multiple licenses in specialty trades, the company performs comprehensive construction solutions and solves complex structural problems for a wide variety of customers without having to retain subcontractors.
The company had experienced significant annual financial setbacks caused by the downturn in the building and construction industry since 2008 and the incumbent bank had frozen its line of credit. Business Capital was introduced to the company by a turnaround firm other consultants, which were unable to secure new funding needed to alleviate liquidity shortages. Shortly following engagement, Business Capital worked closely with the incumbent bank’s Special Assets Group, tailored a structured settlement agreement providing full repayment to the bank, and arranged for the installation of a new scalable credit facility to accommodate the company’s return to profitability and future growth.
“We are thrilled to have played our part in the recapitalization of this company,” said Chuck Doyle, managing director of Business Capital. “It was a challenge because the slow economy has hit the building and construction industry particularly hard. We worked closely with the company and their existing lender and were able to develop a unique and highly customized loan restructuring that benefited both the client and their bank. We were also able to provide them with additional working capital by successfully articulating the strength of the client’s new capital structure and projections for future profitability to carefully selected, specialty lending partners and ultimately get them recapitalized.”
Business Capital is a national commercial finance and debt restructuring firm that specializes in business loans for small- to middle-market companies.