Defense Contractor Payroll Coverage
Case Overview
Reason: Gap Receivables
Funding Amount: $250,000
Approval Amount: $250,000
Industry: Defense Contractor
Use of Funds: Term Loan
Program Type: Payroll
The Story
Jonathan Montpeirous joins us to discuss a defense contracting client in Florida that was experiencing payroll issues due to a contract-related problem. Jonathan walks us through the recommendation of the term loan, explaining why he structured it as long as possible and how he added prepayment incentives to this particular deal.
Jonathan details the thought process behind the decisions made for this particular client and why he secured the term loan.
The Details
The Client
The client is a defense contractor based in Florida.
They were connected to Capital Infusion through one of the company’s portals.
They are also a neighboring business in the local area.
The Situation
The client experienced a payroll problem due to a setback in one of their projects.
They needed immediate access to funds in order to cover payroll and stabilize operations.
The client was particularly concerned about how quickly they could secure funding.
The Solution
I recommended a $250,000 term loan because it was the best fit for the client’s needs.
The loan was structured for the longest possible term to reduce pressure on the client’s cash flow.
I included prepayment incentives so the client could save money if they paid off the loan early.
I expedited the process by speaking with the client at noon and ensuring the funds were deposited into their account by the end of the same day.
After the initial funding, I also helped the client secure a line of credit to provide a financial buffer for future needs.