Working Capital Growth: Central Florida Construction Case Study

Dynamic construction firm secures $375K working capital loan to expand operations and meet seasonal demand. Achieved 40% revenue growth within 12 months.

Yancy Fernandez, Owner & General Contractor of VerticalBuild Solutions a construction business in Central Florida standing at ease

Executive Summary

VerticalBuild Solutions, a growing construction firm in the Orlando metro area, faced a critical cash flow challenge despite healthy revenue projections. The company secured a $375,000 working capital loan to bridge seasonal gaps and capitalize on increased market demand in Central Florida's booming construction sector.

The Challenge

Seasonal fluctuations in construction contracts created 60-90 day payment delays affecting operational liquidity
Inability to purchase materials upfront and hire seasonal crews for multiple concurrent projects
Lost opportunities on larger contracts worth $500K+ due to insufficient working capital reserves
Payroll obligations and vendor payments became increasingly strained during low-revenue quarters

The Solution

VerticalBuild Solutions partnered with a specialized commercial lender to secure a $375,000 working capital line of credit. The structured financing provided the flexibility needed to manage cash conversion cycles while maintaining competitive bidding capabilities. The favorable terms included interest-only payments during construction phases and 24-month amortization post-completion.

The loan proceeds were strategically allocated across three key areas: $150,000 for inventory and material procurement (enabling bulk purchasing discounts), $125,000 for equipment financing and job-site setup, and $100,000 as an operational reserve for payroll and vendor payments during seasonal downturns. This approach enabled VerticalBuild to bid confidently on larger projects, maintain relationships with subcontractors, and weather the natural cyclicality of Central Florida's construction market.

Yancy Fernandez, Owner & General Contractor
"The working capital loan allowed us to take on larger projects without compromising cash flow. We went from turning down jobs to bidding on premium contracts."

The Outcome

Revenue increased 40% year-over-year from $2.8M to $3.92M through expanded project capacity
Successfully completed 12 additional commercial projects valued at $4.2M combined (previously unable to bid)
Improved cash conversion cycle from 75 days to 38 days through better working capital management
Maintained 100% on-time payroll and vendor payment performance, strengthening market reputation

Conclusion

The $375,000 working capital loan transformed VerticalBuild Solutions from a capacity-constrained operation into a growth-stage company. By eliminating cash flow bottlenecks, the company positioned itself as a reliable partner for larger projects and repeat clients.

Looking Forward

VerticalBuild plans to repay the working capital line within 18 months using cash flow from current project pipeline. The company is now exploring a $500,000 equipment line to support fleet expansion and technology upgrades for 2025 operations.