Having won a state contract with the Department of Natural Resources, a contractor whose business had slowed down was suddenly confronted with a good problem: Contracts. The only tough part was that his bank lines had been curtailed with the economic slow down meaning, he was challenged to fulfill and perform with no working capital.

(If you know of someone that overcame similar issues please share situations that you might know of with a blog of your own!)

With his only asset being a piece of raw land, we created a working capital line of credit against the property. He also fulfilled the contract on time and without missing any deadlines.

What made this complicated? Who would lend on raw land when nearly no one was building?

Considered a ‘hard money loan’, this loan was placed in a first position lien/UCC1 on the property and was completed in a rather short amount of time. The important part was the contractor had access to the funds he needed to buy materials and meet payroll through to his first draws from the State … and the timing worked well!

Working with the contractor, we reviewed his contracts and history of fulfillment, establishing a comfort level that allowed us to move forward. With our services, he was able to do what he needed on time while paying the money back without issue.

If you have questions about Hard Money contact me directly @ ebrown@finance-manager.com or feel free to enter your own blog here as we would love to hear your comments!