February 8, 2014 | Case Study

Case Study: Contract Financing

Our client, a specialty plumbing contractor, received a specific sum contract to complete a complex project for a successful real estate management company.   The client needed to obtain permits, rent equipment and hire additional labor. The contract stipulated that payments would be made to the client based on progress –meaning the work had to be done before a payment would be made.  The client needed $250,000 to improve their cash flow until the first progress payment was made.

Solution

Abington Emerson Capital was contacted by the client after their bank did not approve a loan request.  Abington Emerson Capital was able to quickly evaluate the transaction, underwrite the client and approve a loan.  Abington Emerson Capital based the credit decision on the following factors:

  • The client’s customer was a well-known private company with a strong reputation in the real estate industry.  In addition, the contractor had worked on other projects for the client.
  • The client had been in the industry for over 20 years and had an excellent record of completing similar projects on time and within budget.
  • Abington Emerson Capital performed an onsite review to verify the project plan with the contractor and confirm the terms of the contract with the client. In addition, the client was willing to make payments to a bank account controlled Abington Emerson Capital’s customer.

The client was able to provide the client with the full $250,000 requested. This loan improved the client’s cash flow and the client was able to complete the job ahead of schedule.

About Abington Emerson Capital

Abington Emerson Capital is a commercial finance company focused on providing short-term loans to small and mid-sized businesses.  As a privately held company, Abington Emerson Capital offers an alternative to the one-size-fits-all approach of traditional bank underwriting.  You are assessed based on your expertise, quality of your work, and the stability of your clients.  The result is a flexible, customized financing solution that meets your liquidity needs in an otherwise difficult lending environment.