Daily News: November 30, 2012

Business Capital Provides Facility for Contractor


Business Capital (BizCap) announced it provided a $1-5 million scalable working capital facility for a large industrial construction and maintenance contractor.

The client is an industrial contractor, primarily in the business of installing, maintaining and repairing processing equipment for large industrial plants and facilities across the entire U.S., with an international presence as well. The company also provides a complete array of services specializing in cement, gypsum, mining, pulp & paper, marine terminal, EPC, electrical and other services related to industrial equipment wholesale, installation and repair. Turnkey project abilities also include engineering, procurement and construction, maintenance shutdowns and turnaround projects.

The company has remained profitable despite the industry moving into a dormant state after the economic crises. It was seeking capital to maintain and upgrade existing facilities and pave the way for financing the acquisition of additional facilities, including cement plants, in anticipation of predicted growth. Despite a history of profitability and low debt, the company was unable to find a lender willing to provide a scalable loan for the industrial plants based on progress billing and the owner did not want to provide a personal guarantee or use any of his company’s hard assets as collateral.

Business Capital developed a global understanding of the client’s situation and delivered a comprehensive package of scalable credit as well as a small term loan to immediately maximize working capital and liquidity. The client’s short term needs were addressed by leveraging A/R and avoiding the pledge of additional collateral or a personal guarantee. This solution will not only set the client up to increase short-term profitability, but also achieve their long-term goal for additional acquisitions and major growth.

“Financing partial progress billing at under 10% is not an easy task especially when there are no personal guarantees available. Our client survived the economic crisis with integrity intact; as such we were able to leverage the principal’s reputation in the industry, then delivered a customized solution with a bank that saw the value and significant upside in the new relationship,” said Chuck Doyle, managing director, Business Capital.

Business Capital structures and delivers customized solutions to hyper-growth and distressed small and middle-market companies nationwide.