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Construction•Working Capital Loan

Construction Company Secures Bridge Financing for Major Project

Learn how Martinez Construction used working capital to bridge a gap between project phases, enabling them to grow their business by 35%.

$250,000
Funded Amount
Successfully started $2.1M project on time, grew annual revenue 35% to $4.3M, increased project capacity by 67%, and expanded team from 12 to 18 employees.
Results
THE CHALLENGE
Needed bridge financing to start a major new $2.1M project while awaiting $850K in receivables from completed work. Traditional bank turned them down, and SBA timeline was too slow.
THE SOLUTION
Quick approval and funding of $250,000 working capital loan combined with $680,000 invoice factoring facility. Total solution deployed in under 3 weeks to meet project deadline.

"Without Banked.fyi, we would have lost the biggest contract in our company's history. They understood construction cash flow and put together a solution that worked. We've grown 35% since then."

Martinez L., Construction

Construction Company Secures Bridge Financing for Major Project

The Client

Martinez Construction LLC is a Phoenix-based commercial construction company specializing in tenant improvements and light commercial builds. Founded by Roberto Martinez in 2012, the company has grown from a one-man operation to a team of 15 employees.

With a solid reputation for quality work and on-time delivery, Martinez Construction was poised for significant growth—but faced the classic construction cash flow challenge.

The Challenge

The Opportunity

In early 2024, Martinez Construction was awarded their largest project ever: a $2.1 million retail buildout for a national coffee chain.

The Cash Flow Problem

Like many construction companies, Martinez operated on 60-90 day payment terms. They had:

  • ●$850,000 in outstanding receivables from two completed projects
  • ●$250,000 needed upfront for materials and labor on the new project
  • ●$180,000 due for completion bonding
  • ●$35,000 monthly payroll obligations

The math didn't work. Waiting for the $850K to arrive meant missing the project start date—and likely losing the contract.

What Made It Worse

  • ●Bank said "no" due to the large receivables creating debt-to-income concerns
  • ●Credit card limits were already near max
  • ●Traditional SBA timeline (60-90 days) was too slow
  • ●Project start deadline: 3 weeks away

Finding the Solution

Roberto reached out to Banked.fyi after seeing our industry-specific content on construction financing.

The Assessment

After reviewing Martinez Construction's situation, we identified two complementary solutions:

1. Invoice Factoring ($680,000)

  • ●Factor 80% of outstanding receivables
  • ●Immediate cash against invoices
  • ●Customer credit was strong (national retailers)

2. Working Capital Loan ($250,000)

  • ●Bridge funding for project startup
  • ●Fast approval based on strong revenue
  • ●Flexible weekly payments

Why This Combination?

  1. ●Factoring provided most of the capital at lowest cost
  2. ●Working capital filled the gap quickly
  3. ●Total funding aligned with actual needs
  4. ●Repayment timing matched incoming project payments

The Process

Week 1:

  • ●Initial consultation and document review
  • ●Bank statements, receivables aging, project contract reviewed
  • ●Options presented and compared

Week 2:

  • ●Factoring facility approved: $680,000 advance on $850K receivables
  • ●Working capital approved: $250,000 at 1.28 factor rate
  • ●Total available: $930,000

Week 3:

  • ●Funds deployed
  • ●Materials ordered
  • ●Crew mobilized
  • ●Project started on time

The Results

Project Success

The $2.1M coffee chain buildout was completed:

  • ●On time
  • ●Under budget
  • ●To specification
  • ●Leading to three additional locations awarded

Financial Impact

MetricBeforeAfterChange
Annual revenue$3.2M$4.3M+35%
Project capacity2-3 simultaneous4-5 simultaneous+67%
Avg project size$280K$520K+86%
Employee count1218+50%

Repayment

  • ●Factoring: Paid off as customers paid invoices (avg 52 days)
  • ●Working capital: Repaid from project progress payments
  • ●Total cost of financing: ~$47,000
  • ●ROI: Financing cost was 2.2% of project value, unlocking 35% growth

Key Takeaways

For Construction Companies

  1. ●Plan financing early - Don't wait until you're against a deadline
  2. ●Factor existing receivables first - Lower cost than new debt
  3. ●Match financing to need - Bridge funding for bridges, not permanent capital
  4. ●Strong customers = better terms - Creditworthy clients improve factoring rates
  5. ●Growth requires capital - Don't let cash flow limit opportunity

The Financing Strategy

  1. ●Use receivables as an asset - They have value before collection
  2. ●Layer funding types - Different needs = different solutions
  3. ●Consider total cost, not just rate - $47K to unlock $4.3M revenue
  4. ●Speed matters - The right funding at the wrong time doesn't help

What's Next

With the successful completion of the coffee chain project, Martinez Construction has:

  • ●Established a factoring relationship for ongoing cash flow management
  • ●Built reserves from increased profits
  • ●Hired a project manager to handle growth
  • ●Qualified for bonding on larger projects

Roberto is now evaluating opportunities in the $3-5M project range—opportunities that weren't possible before establishing the financing infrastructure.

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