This company is a full-service construction management and design firm providing services for a wide range of clients. Like many other companies that experience growth, their cash flow was stifling their growth potential and creating challenges to obtain traditional financing.
As with each individual client, Capstone understood this company had unique needs. Our goal was to ensure they had the existing cash flow to accept additional work, and provide the support they needed to go after regional and international clients.
BACKGROUND
In May 2015, Capstone met with a successful Minority and Women-owned Business Enterprise (MWBE) construction management and design-build firm located in Philadelphia, PA
Clients included Comcast, Philadelphia Chamber of Commerce, Philadelphia School District, and Marriott
Total funding to date: $1.1 million
COMPANY CHALLENGES
While the company was successful at winning large contracts for their construction management and interior design services, they could not afford financing with their existing cash flow. The company sought to expand its services regionally and internationally
CAPSTONE’S SOLUTION
- Provided a two-year $30 million Master Factoring Facility to provide working capital required for supporting a larger volume of contracts
- Provided letters of financial support to supplement the client’s bid during the bidding process
PROGRESS & FUTURE OUTLOOK
- The company was awarded an additional two-year contract extension with their main client and is now in the process of adding additional personnel on the project
- Anticipates being awarded an additional $7 million in new contracts with their main customer
- Client has been able to bid on much larger contracts including public works projects, Temple University and the Philadelphia Airport
- Total bid list is now over $100 million
