CLIENT
A Texas electrical contractor had spent more than two decades building a strong track record on schools, healthcare facilities, and other bonded public projects.
As the company took on more work and pursued larger projects, the financial support behind the business needed to evolve with it.
CHALLENGE
Growth was putting more pressure on working capital
The contractor was facing a delicate financial balancing act: Project costs were coming due well before the corresponding progress payments were received.
At the same time, its existing surety and funds control arrangement was limiting the size of bonded work the company could take on.The company needed additional working capital for current projects, along with a bonding relationship that could better support where the business was headed.
SOLUTION
$770K in project financing and a new surety relationship
Mobilization Funding built a detailed project cash-flow model and approved a $770K financing facility to support two school projects.
But financing was only part of the solution.
We also helped the company establish a new surety relationship that better supported its bonding needs.
To help the new surety understand how the projects would be funded, Mobilization Funding provided:
- A financing approval letter
- Detailed project cash-flow analysis
- A clear view of how project costs would be covered
- A repayment plan over the life of the projects
RESULTS
More liquidity, and more room to grow
With the financing, cash-flow plan, and new surety relationship working together, the contractor was able to:
✓ Improve liquidity while managing active projects
✓ Strengthen its bonding position
✓ Move forward on larger opportunities
✓ Spend more time focused on project execution, customers, and growth
That’s the difference between providing funding and providing a solution
Contractors taking on larger bonded work often need more than access to capital. The financing, project cash flow, and surety relationship all have to work together.
Mobilization Funding helped this electrical contractor put those pieces in place so the company could keep executing the work in front of it while preparing for what comes next.
