Equipment Refinance Provides Working Capital to Bridge Cash Flow Gap

Lancaster Development – Civil Construction, Aggregate and Asphalt Production

Northeast

In business since 1947, Lancaster Development, now run by the third generation of the Galasso family, has grown into a large design/build civil construction company. They develop and build bridges and highways and are vertically integrated, providing much of the aggregate and asphalt required in their projects.

Coming out of the 2022/23 winter off-season, Lancaster Development had projects lined up but due to budget cuts at the state level the spring projects were canceled. They had later projects in their pipeline, but those wouldn’t generate cash in the short term. This led to a significant cash flow issue. They needed a way bridge the longer-than-anticipated incoming revenue gap.

They met with their bank, and like most traditional lenders, the bank didn’t understand the long-term view of their upcoming projects, so were unable to provide a solution to their short-term problem.

Lancaster had used CCG to finance some of their previous equipment purchases so they reached out to discuss the situation. Unlike the bank, CCG was willing to look at the problem holistically. The Lancaster owners met with the CCG team, including the credit analysts, and provided a complete overview of the business, the book of upcoming projects, and the equipment fleet. With this information the underwriting team was able to see beyond the financial statements, balance sheets and short-term cash flow projections. Together they crafted a plan to refinance some of Lancaster’s existing equipment, providing enough working capital to see them through their revenue lull.

By refinancing their existing equipment, Lancaster Development received an infusion of cash that allowed them to meet their financial obligations and continue running their business without having to lay off employees or sell any equipment. This ensured that they had the resources necessary to meet their upcoming project contracts and continue bidding on jobs to ensure their long-term success. 

“With CCG, we have a relationship. My lending representative has spent an inordinate amount of time getting to know us personally and getting to know our company. That is what set the foundation and what sets CCG apart from a traditional lender.” – Marty Galasso, Jr.