Drilling Contractor was in dire need of working capital to start a new project. The project was out of state and required the movement of equipment, and the rental of more equipment on the project site.
While the business was stressed, past performances on projects similar to this, were exceptional. Ascend introduced a lending partner who specializes in front end expenses on contracts.
In two weeks, underwriting completed and the business was able to take on the new work with the placement of $300,000 in debt. Monies were then used to start the project and the loan was paid back within the first few months of the contract.
While this money is not inexpensive, the revenues would have been lost because the necessary capital was lacking, and the margins of the new project could handle the cost of money.
