Flatbay Capital’s new client, a general contractor in the DFW area that specializes in renovation and maintenance projects, has had a positive net income of over $300,000 for the past two years. However, payment delays between completed projects caused a lack of working capital.
Originally, the company pursued a line of credit with its bank but was declined due to the cyclical nature of the industry and the contractor’s inconsistent yearly revenues. Seeking alternative means, the company reached out to Flatbay Capital’s business development officer, Stephanie Roehm. Flatbay Capital delivered a $700,000 commercial real estate line of credit to support working capital needs between projects.
“Despite good management and positive income, companies in the contractor/construction industry often face funding denials due to perceived industry risk,” says Stephanie. “After understanding the owner’s concerns and their vision for the future, we recognized this as a solid company and are pleased to provide them with the financial cushion they need.”
