Summary
A HVAC contractor with nearly two decades in the field had built exactly the kind of business a bank should want to back. Long-term government contracts, institutional clients, and revenues that had multiplied five times over in five years. Their existing lender had fallen so far behind the growth that the working capital available to them barely covered day-to-day operations. DBLS came in, told the real story, and walked away with a top tier banking relationship that gave this company room to breathe and room to grow.
The Challenge
Growth sounds like a good problem to have until your bank can’t keep up with it. This contractor had earned standing offers with some of Canada’s most recognizable government and institutional clients, contracts that came with payment cycles stretching well past 90 days. To bridge that gap and keep taking on new work, they needed a working capital facility that reflected the actual size of the operation. What they had was a lender who had over-secured the collateral and left them with a fraction of what they needed. The bigger the jobs got, the tighter the squeeze.
The Solution
DBLS took a hard look at what made this business worth backing and built the case around it. Fifteen years of consistent profitability. A blue-chip client list anchored by government standing offers. A senior management team with the depth to execute on continued growth. We structured a borrowing base that properly accounted for government and institutional receivables and made the argument for the facility size the business had earned. Then we found the lender willing to see it the same way.
The Results
Full-relationship facility secured with a top tier bank including a substantial operating line, a capital expenditure facility, and a corporate credit card, all at competitive rates. The working capital available to this company increased by more than ten times what their previous bank had been willing to extend. Sometimes the biggest unlock for a growing business is simply finding a financial partner that understands what it has already built.
