FEATURED CASE STUDY – 03
Bridging Cashflow Gaps for Large-Scale Construction Projects
About
Securing Flexible Credit to Match Project Expansion
A concrete subcontractor engaged in a federal prison expansion project in Alabama began receiving incremental work beyond their base contract. Although they were well-capitalized for the initial scope, the expanded project significantly increased their funding requirements.
The company needed additional liquidity to procure materials and cover labor costs ahead of billing cycles. Traditional financing was not an option due to timing and project-specific complexities.
Problem
Cashflow Strain from Expanded Project Scope
The subcontractor faced a cashflow shortfall as project demands grew faster than existing capital resources, creating a gap between upfront expenses and delayed client billings.
Goal
Bridge Funding to Sustain Operations
They needed a short-term credit structure aligned with their weekly project cashflow to maintain procurement and payroll continuity while waiting for receivable cycles to catch up.
Solution
Custom Line of Credit with Dynamic Repayment Schedule
We collaborated with a non-bank specialty lender to implement a line of credit specifically tied to the project’s cashflow. Together with the client, the lender built a flexible repayment plan reviewed weekly and adjusted based on weather, materials, and schedule shifts.
Collaborative Cashflow Forecasting
Our financing approach was anchored in weekly forecasting and open communication between all parties, ensuring real-time visibility and proactive adjustments throughout the project lifecycle.
Phase 1
Assessed expanded project scope and cash demands
Modeled weekly inflows/outflows to identify funding gaps
Defined repayment timelines aligned with milestone billing
Phase 2
Lender Alignment & Facility Design
Partnered with a construction-focused non-bank lender
Structured a revolving credit facility linked to project forecasts
Integrated milestone-based reviews and draw schedules
Phase 3
Execution & Active Oversight
Weekly review meetings to adjust funding based on progress
Real-time forecasting adjustments for weather or delivery delays
Ensured continuous liquidity and project momentum
Result
Maintained Momentum and On-Time Delivery
By securing flexible project-based funding, the subcontractor maintained seamless operations and avoided costly work stoppages during an accelerated build phase.
The client’s proactive approach to gap financing ensured project completion without disruption, setting a foundation for future federal contracting opportunities.
CASE STUDIES
