[Kevin Henry-Seacoast]

Hi DF,

I have seen a few construction related deals the past couple of weeks. It is probably a direct result of fair building weather coming back in full swing and home builders in certain parts of the country can't build houses fast enough. We generally avoid consumer construction companies as there are not assets to finance. We avoid contractors that work on large commercial projects as those deals are typically milestone/progress billed, may have bonding requirements, and/or are pay when paid contracts.....all of which can trip up an asset based lender.

We do like building product manufacturers and distributors. We also like select contractors that work for major home builders where their billing practices are complete and bill. Example: A company that provides mill-work and installation for a large home builder.

We can provide working capital facilities to these companies in the forms of factoring or asset based loans where we are financing the accounts receivables. We can also finance inventory and equipment as part of an AR facility.

Ideal Client:
-Sells products or services to major home builders on terms not exceeding 60 days.
-Generates revenue in excess of $2mil.
-Uses their own employees to do the majority of the work.
-Current with suppliers or on payment terms with supplier to avoid liens.

Let me know if you encounter a company in the industry that has a working capital need.

Best,

Kevin