Flatbay Capital funded a $1,000,000 owner-occupied commercial real estate bridge loan for a family-owned roofing company based in Central Texas. The company offers roof repairs, full roof replacement, modified bitumen, and metal roofing.

The 20-year-old roofing business customer began to experience a significant drop in sales and profit margin in 2022, which was attributed to market conditions and the company’s extensive overhead. The 2021 Central Texas hail storm led to a surge in the roofing business resulting in the rapid growth of the company's manpower. However, a subsequent drought combined with market conditions resulted in a decrease in revenue and a necessary reduction in staff for the company. This decline in revenue is a common occurrence for companies that experience sudden spikes in business due to natural disasters or other catastrophic events without having the proper contingencies in place to adjust back to “normal” business

The loan will provide additional working capital for the company to expand its operations and invest in new equipment. The company's debt will be manageable in the future, taking into account current revenue and debt restructuring efforts.  During a recent site visit, it was observed that the business is experiencing a favorable trend with a considerable amount of work. The ongoing business contracts indicate a healthy pipeline of work, which is expected to continue. This positive trend bodes well for the business's future growth and success allowing the client to return to mainstream banking within 3 years.