A flexible facility arranged around the contractor's revenue and signed contracts.
CASE STUDY · SPECIALTY CONTRACTING
Scaling a specialty contractor
Years of reliable work led to a much larger master services agreement with a group of regional apartment complexes.
The opportunity could grow annual revenue by nearly 40%. The challenge was finding enough working capital to take it on.
The turnaround in this engagement, not a promise of timing for other files.
The potential increase in annual revenue from the expanded service agreement.
Revenue tripled as the business grew while using revenue-based financing.
The situation
After years of strong performance, a specialty contractor significantly expanded its master services agreement with a group of regional apartment complexes. The larger agreement presented an opportunity to increase the business's annual revenue by nearly 40%.
The owner explored several financing options to prepare for the work ahead. With a credit score in the mid-600s and no collateral, traditional banks offered small lines of credit or declined the file entirely.
The financing approach
The financing opportunity rested on what the business had already demonstrated: revenue from its work and signed contracts for a larger service commitment. CCA used that evidence to arrange a flexible $750,000 working capital facility.
The facility was made available in three business days. CCA's role was to connect the business's revenue and contracted work with a financing structure that could support the expanded agreement, rather than rely on a traditional bank's collateral requirements.
Revenue and signed contracts supported a $750,000 working capital facility when the bank options were too small or unavailable.
FIVE YEARS LATER
Growth created room for the next opportunity.
01
The expanded agreement became revenue
The owner successfully scaled the business's revenue while delivering on the larger agreement with the regional apartment complexes.
02
A stronger reputation brought referrals
The contractor was recommended to other property management companies in the area, creating further opportunities as its reputation grew.
03
Financing capacity grew with the business
As revenue increased, the business qualified for larger facilities. Over a five-year span, it tripled its revenue while using revenue-based financing to support its growth.
CASE STUDY FAQ
Common Questions
What was the contractor trying to finance?
The contractor needed working capital to support a significantly expanded master services agreement with a group of regional apartment complexes. The opportunity could increase annual revenue by nearly 40%.
Why were the traditional bank options insufficient?
With a credit score in the mid-600s and no collateral, the owner received small lines of credit or was declined. In this case, CCA used the business's revenue and signed contracts to arrange a flexible $750,000 working capital facility.
What happened after the facility was made available?
The owner scaled revenue, received referrals to other property management companies, and qualified for larger facilities as revenue grew. The business tripled revenue over five years while using revenue-based financing. This is one client's outcome, not a guarantee of results or financing availability.
NEXT STEP
Have a larger contract in front of you?
Talk through the revenue, signed agreements, and working capital needs behind it. We can help assess which financing options may fit, subject to lender review.
Client details are anonymized. Photos are illustrative and do not depict the client. This describes the outcome of one client engagement and is not a prediction, projection, or guarantee of results. Financing costs, structures, and outcomes vary significantly by file. Nothing here is investment, legal, or tax advice. Custom Capital Advisors is not a direct lender, and nothing here is an offer of credit or a guarantee of approval, rate, amount, or timing. All terms are subject to lender review of your documentation.
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