A commercial construction firm focused on large-scale municipal projects found itself at a pivotal moment. After securing multiple new public-sector contracts, the company needed immediate access to capital to mobilize crews, procure materials, and meet aggressive project start dates. While the long-term revenue opportunity was substantial, the timing mismatch between upfront expenses and progress-based payments created a significant cash flow gap that traditional financing sources were unable to address quickly enough.
Vision
The firm’s leadership had a clear objective: execute more than $20 million in newly awarded municipal contracts while continuing to build a strong reputation for reliability, scale, and operational excellence. Successfully delivering on these projects would not only drive near-term revenue but also position the company for future bids with municipalities seeking proven, well-capitalized contractors capable of managing complex timelines and compliance requirements.
Opportunity
Starting projects on schedule was critical. Municipal clients expect strict adherence to timelines, and delays during mobilization can jeopardize relationships, future contract awards, and overall credibility. With the right capital solution in place, the firm could accelerate revenue recognition, keep multiple projects moving simultaneously, and reinforce its standing as a dependable partner in the public-sector construction space.
Challenge
Despite strong contracts and a robust project pipeline, several obstacles stood in the way:
Progress-Billing Delays
Payments were tied to project milestones, creating a lag between incurred costs and incoming cash.
Significant Upfront Costs
Labor, equipment staging, materials, and subcontractor coordination all required immediate funding before invoices could be submitted.
Capital Structure Complexity
The company already had a senior lender in place, meaning any additional financing required careful coordination and approval to avoid disrupting existing agreements.
How Fora Financial Helped
To address the gap, a junior capital facility of $1.5 million was structured and deployed in close coordination with the firm’s senior lender. This collaborative approach ensured that the additional funding complemented the existing capital stack rather than complicating it. Most importantly, the solution was executed quickly, allowing the firm to meet mobilization deadlines without slowing project momentum.
Results
On-Time Project Launches
All municipal projects began as scheduled, avoiding costly delays or reputational risk.
Revenue Activation
More than $20 million in contracts moved into active execution, converting backlog into earned revenue.
Operation Stability
The firm maintained healthy cash flow throughout early project phases despite progress-billing timelines.
Aligned Stakeholders
Clear communication and transparency ensured smooth coordination among all lending parties.
Conclusion
By acting swiftly and strategically, Fora Financial allowed this commercial construction firm to launch multimillion-dollar municipal projects without delay. Coordinating seamlessly with the company’s senior lender, Fora Financial played a crucial role in unlocking over $20M in potential revenue, proving to be a vital partner for progress-billed contractors.
Why Fora Financial
The impact was immediate and measurable:
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Speed and Collaboration
Fora Financial worked directly with the senior lender to accelerate funding.
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Construction Expertise
Fora Financial’s familiarity with progress-billing structures allowed for a seamless fit.
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Long-Term Partnership
The firm valued Fora Financial’s ability to coordinate complex deals efficiently.