A technology and data services company in the Northeast faced cash flow constraints after receiving a large purchase order (PO) from a longstanding customer. To fulfill the order and manage a traditionally slow Q4 season, they needed immediate funding.
Vision
The construction company aimed to continue its impressive growth by completing high-value projects and expanding its client base. Maintaining financial stability during unexpected challenges was key to realizing this vision and positioning the company for future success.
Opportunity
The construction industry in Georgia presented significant opportunities for expansion and profitability. By successfully completing large projects, the company could enhance its reputation and secure more high-value contracts. However, seizing these opportunities required overcoming the immediate financial challenges posed by the loss of a major client.
Challenge
The company faced several critical challenges:
Client Collapse
A major client going under in the midst of a multimillion-dollar project created a significant financial strain.
Financing Hurdles
The company had been declined by two lenders and received an approval from one, but the $55k offered was insufficient to meet their needs.
Challenge 3
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Challenge 4
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How Fora Financial Helped
Fora Financial recognized the urgency and potential of the situation. Demonstrating flexibility and a willingness to take calculated risks, Fora Financial approved $300,000 in funding for the company. Additionally, an option for an early renewal was provided, allowing for an additional $300,000 in 60 days, contingent on stable financials. This immediate injection of capital enabled the company to continue working on the existing project, mitigating the long-term impact of losing a large client.
Results
Continued
Project Work
The funding allowed the company to continue the multimillion-dollar project without interruption, preserving their reputation and client relationships.
Financial
Stability
The flexible financing option provided by Fora Financial helped stabilize the company's finances, ensuring they could navigate the loss of a significant client.
Reduced Long-term
Impact
By securing the necessary funds, the company drastically reduced the potential long-term impact of their financial challenges, positioning them for future growth.
Conclusion
Fora Financial's timely and flexible financing solution enabled the construction company to overcome significant financial challenges and maintain their growth trajectory. By providing $300,000 in initial funding with an option for an additional $300,000, Fora Financial played a pivotal role in ensuring the company's financial stability and continued success in the competitive construction industry. This case study highlights the importance of responsive and adaptable financial partnerships in supporting business growth and resilience.
Why Fora Financial
The construction company chose Fora Financial for several reasons:
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Flexibility
Fora Financial showcased a willingness to provide a substantial funding amount with the option for additional capital, tailored to the company's specific needs.
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Risk Appetite
Fora Financial's ability to understand and take calculated risks was crucial in offering a solution when other lenders could not.
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Supportive Partnership
The quick response and comprehensive support provided by Fora Financial were critical in helping the company address their immediate challenges and plan for future stability.