Covering Construction Payroll
Case Overview
Reason: Slow Payments
Funding Amount: $50,000
Approval Amount: $50,000
Industry: Construction
Use of Funds: Business Operations
Program Type: Working Capital
The Story
Rio sits down with us to discuss a client he has helped multiple times over the years, who reached out earlier this month to discuss applying for funding due to a project pay out being slowed down. Rio walks us through how he was able to fund them in house, the pre-pay incentives attached to this working capital, and how it allowed him access to the best rates possible.
The Details
The Client
The client owns a construction company based in Maryland.
He has an ongoing working relationship with Capital Infusion.
Like many in the construction industry, he experiences delayed payments due to net 30, 60, or 90-day invoicing terms.
These payment delays create periodic cash flow gaps that affect his ability to cover payroll and material costs.
The Situation
The client contacted us on a Tuesday morning because he was being slow-paid on a current project.
He requested $50,000 in working capital to help bridge the gap and keep his operations running smoothly.
He needed the funding quickly to avoid interruptions in project progress and business expenses.
The Solution
We reviewed the last three months of his bank statements and approved him for a short-term working capital loan.
He was funded the same day, allowing him to access the capital without delay.
Unlike previous deals that were funded through one of our partners, this deal was funded directly in-house by Capital Infusion.
By working with us directly, the client benefited from reduced fees and more favorable pricing.
We also offered prepayment incentives, allowing him to save money by paying off early once his receivables came in.
With the funding secured, he was able to continue operations seamlessly, cover payroll, and purchase materials for ongoing projects.