Construction Firm Master Factoring & Purchase Order Financing Case Study

Background

The Client is the largest construction/ general contractor company in the Pittsburgh, PA region

Industries served by the client include hospitality, timeshare, multifamily/ senior living, energy, sports, and retail

The Client has consistently ranked among the Top 10 Contractors in the United States

Company Challenges

Highly cash flow constrained

The Client struggled with stretched payables demand and less profitable terms, which constricted margins, operating leverage, and the company’s ability to generate new and profitable business

Capstone’s Solution

Began with a $15 million Master Factoring Facility and a $5 million Purchase Order Financing Facility to inject the working capital required for supporting their backlog of projects

Progress and Future Outlook

Constraints drastically eased on cash flow

Timely payments are being made to vendors

Currently doing $20 million on a monthly basis on both Factoring / PO

Facilities

The Client can now focus on the rapid growth of their company-revenues have doubled on a monthly basis

Capstone is funding 6 active projects:

• Four Seasons Resort in Bermuda- $173 million contract
• Half Moon Bay Hotel in Jamaica- $50 million contract
• Ritz-Carlton Napa Valley in Calistoga, CA – $123 million contract
• Belmond Cap Juluca in Maundays Bay, Anguilla – $75 million contract
• Ritz Carlton Resort in St Thomas, US Virgin Islands – $55 million contract
• Rosewood Little Dix Bay Resort in Virgin Gorda, BVI – $73 million contract