Smoothing Cash Flow For A Growing HVAC Contractor

A husband and wife team had won several new commercial HVAC contracts that were profitable but required hiring additional crews and buying service vehicles long before invoices would be paid in forty five to sixty days.

Their existing bank line was maxed out and additional secured lending would have required more collateral and personal guarantees, which made it difficult to accept new work with confidence.

Within nine months the business increased total revenue by thirty five percent, grew recurring maintenance subscription revenue by twenty five percent, stayed current on payroll and vendors even during slow pay periods, and later qualified for a larger conventional bank line based on improved financials.

Purple Tree Funding reviewed invoicing patterns, the mix of commercial and residential work, and contract margins then advanced one hundred eighty thousand dollars against expected revenue using a revenue based structure where a small fixed percentage of weekly deposits went toward repayment, allowing payments to flex with activity.