CLIENT
An HVAC contractor had secured five projects that were all scheduled to begin within days of each other.
Winning the work represented a significant growth opportunity. However, the company needed substantial upfront capital to support labor, materials, and project startup costs before any project revenue would be received.
CHALLENGE
Work Order Structure Created a Cash Flow Gap
The projects were structured as work orders with billing upon completion, followed by net-30 payment terms.
This created a cash flow gap of approximately 45–60 days between project startup costs and customer payment.
With five projects mobilizing at nearly the same time, the company faced increasing pressure on organizational cash flow during a critical period of growth.
SOLUTION
A $325K Project Funding Facility
Mobilization Funding structured a project-based financing solution tailored to each of the five projects.
The facility provided capital to support:
- Upfront material purchases
- Payroll and labor expenses
- Project-related operating costs
- Critical project startup requirements
The funding structure allowed project execution to move forward without requiring the contractor to drain organizational capital or delay growth plans.
RESULTS
Funding That Supported Growth
With the financing structure in place, the company successfully mobilized and executed the project while maintaining healthy cash flow throughout the construction cycle. The facility enabled the contractor to:
✓ Executed five projects simultaneously
✓ Maintained operational flexibility during a period of rapid growth
✓ Preserved organizational capital for future opportunities
✓ Avoided turning down profitable work due to cash flow constraints
✓ Kept projects moving forward while awaiting customer payment
