The Company, established in 1949, is a family-owned mechanical contractor delivering full design, construction, fabrication and maintenance services for complex plumbing, piping and HVAC systems. Multi-million dollar projects have included renovations and expansions for large hotels and hospitals and hundreds of smaller jobs that require commercial plumbing and HVAC services. The company also works on public projects, including the installation of complex mechanical systems for one of the California Department of Transportation’s (Caltrans) largest current projects. With over 250 employees, the company generates well over $50 million in annual revenue.

After the economic downturn, the Company experienced a cash flow shortage - worsened by taking on a large, unprofitable project during that time. They proceeded to blow through their bank covenants, were placed in the special assets department of the bank and instructed to find a new lender quickly or start liquidating assets to pay off the loans. Because of The Company’s thin margins, it was critical to deliver conventional financing at an all-in interest rate of about 5%, a challenge for a client in their bank’s special assets department, with progress billing, retention and other contractor-related issues.

Business Capital was referred in by a bank the Company was interviewing when they were declined again and was able to target out-of-the-box, hard to find lending sources and structure a customized, affordable working capital credit facility. This will provide the Company the liquidity needed to take advantage of new business opportunities and future growth.

“Our client was fatigued with the delays and lack of traction they were seeing in the credit market,” said Chuck Doyle, Managing Director of Business Capital. “This client was at a critical juncture and our team delivered the most competitively priced (5%), intelligently structured financial solution in just 60 days."

Business Capital is a leading commercial finance and debt restructuring firm specializing in arranging customized debt based solutions for rapidly growing as well as distressed small and middle market companies nationwide who require a unique, timely and tailored financing structure to address their particular needs.