Contractor Purchases New Equipment Despite Late Rental Payments

Cash strapped, this site prep contractor was past due on equipment rental payments and had an outstanding tax lien, but they also had a significant amount of contracted future work. They needed to purchase equipment to continue operations.

Situation

Payment Delays Result in Poor Cash Flow and Missed Rental Payments

The customer was under contract to work on 192 lots but was experiencing a delay in payment for work previously performed. As a result, they were past due on payments for equipment on rent from the local equipment dealer, past due on payments for financed equipment, and had some outstanding tax liens. The customer also needed money for short-term operations while they waited for their accounts receivable to pay. 

They needed a lender that would:

  • Realize the value of their existing contracts
  • Understand the reasons causing their current situation
  • Recognize the value in their existing equipment

They also needed the transactional expertise to payoff existing debt and obtain working capital to continue operation.

Solution

Refinance of Existing Equipment Provides Working Capital to Payoff Outstanding Debts

CCG structured a loan that accomplished the following:

site prep contractor purchases equipment despite late rental payments