Flooring and Window Covering Subcontractor
$750,000 Line of Credit
A flooring supplier-installer sought a new lender after their current bank asked them to find alternative financing. The company failed to meet the bank’s debt service covenant plus the bank was transitioning away from construction lending. The bank extended a large SBA loan in 2006, which they agreed to keep in place.
As a result of the bank’s subordination of accounts receivable and inventory, First Community Financial was able to provide a $750,000 revolving line of credit for working capital. Although the transaction was construction related, all unit billings were based on acknowledged work orders for completed projects or for completed phases of a project. First Community’s experience and expertise in the construction industry allowed it to structure a credit facility that met the needs of the customer operating in a difficult market environment.
