Knoxville, TN – January 31, 2024 – CapitalPlus Financial Services, famous for its tailored working capital solutions, proudly announces the provision of $2 million in funding to an Oregon-based framing contractor.
In 2021, this framer secured a contract for a substantial, multimillion-dollar framing project. The work commenced with the aid of a $1.5 million line of credit from their bank. However, post-pandemic supply chain disruptions led to a tripling of material costs, compelling the contractor to bear these increased expenses — their contract did not allow for adjusting the billing to cover these extra costs. This led to significant company losses. That caused the contractor to fall out of compliance with their bank and were assigned to a workout officer.
Curt Powell, Vice President of Sales at CapitalPlus, remarked, “Fortunately, the contractor engaged with us at a critical time. We collaborated with both the contractor and their bank to avert liquidation. Our negotiations led to an intercreditor agreement, which established an effective eight-month payoff plan.”
This strategic partnership and innovative approach ensured that the bank would be fully compensated without incurring any losses. Additionally, it guaranteed that suppliers’ payments would be current, and the contractor would retain adequate cash flow for payroll management and confidently embark on new projects.
Since its inception in 1998, CapitalPlus Financial Services has been a pioneer in delivering groundbreaking financial solutions to the construction sector. The company’s dedication to addressing the varied financial needs of its clients has cemented its status as a trusted ally in the construction industry.Back to news