✅ For Brokers: Deliver Rapid Solutions.
✅ For Borrowers: Keep Your Projects Moving.
The construction industry is a complex dance of timelines, resources, and, critically, cash flow. Delays are inevitable, but their impact doesn’t have to be. This case study illustrates how Secured Lending’s Short-Term Business Line of Credit (BLOC) provides the agility needed to overcome common industry challenges, keeping projects on track and reputations intact.
The Challenge: A Reputable Builder’s Cash Flow Crunch
Our client, a respected commercial builder, recently completed a $500,000 project milestone. The work was done, the quality was high, but then came the all-too-familiar hurdle: an unexpected 45-day delay in the client’s progress claim review process.
Suddenly, the builder faced a significant cash flow crunch. Immediate payroll obligations for a large team were looming, and crucial material orders for the next phase of the project couldn’t be placed. Without rapid access to funds, the builder risked:
- Delaying payments to contractors and employees, damaging morale and potentially leading to staff turnover.
- Straining relationships with key suppliers, which could impact future material pricing and delivery schedules.
- A costly, three-week stall on the new project, eroding profit margins.
Traditional bank financing was too slow, and personal funds were insufficient for the scale of the immediate need.
The Solution: A Strategic Draw from Secured Lending’s Short-Term BLOC
This is precisely the scenario our Short-Term BLOC is designed for. Understanding the urgency, the builder, through their broker, approached Secured Lending.
- Quick Assessment: Secured Lending swiftly assessed the builder’s situation, focusing on their proposed security, project pipeline and clear impending payment.
- BLOC Activation: Leveraging their investment property as a second mortgage, the builder quickly drew $250,000 from their pre-approved BLOC facility.
- Immediate Relief: These funds were immediately deployed to cover the outstanding payroll and suppliers securing the necessary materials for the upcoming project phase.
- Efficient Repayment: Just 30 days later, as soon as the client’s delayed progress payment finally cleared, the builder repaid the $250,000 BLOC draw in full.
- Flexibility: Now that the builder has available funds in the BLOC, he has the flexibility to draw on the funds at will. This ensures he can keep up with the operational costs for his business and pay suppliers when necessary. Crucially, he will only be charged interest and loan management fees on the funds that he has drawn. Any undrawn balance is essentially an accessible safety net without incurring immediate cost.
The Benefit: Project Continuity, Financial Stability, and Peace of Mind
The impact of the Short-Term BLOC was immediate and far-reaching:
- Uninterrupted Operations: The builder avoided any disruption to payroll and ensured materials for the next project were ordered on time. This prevented a costly, three-week project stall.
- Strong Relationships Maintained: Employees were paid on time, preserving morale. Suppliers received prompt payment, strengthening crucial trade relationships.
- Cost-Effective Funding: Crucially, the builder only paid interest for one month on the $250,000 drawn amount. This proved significantly more economical than the potential costs of project delays, penalties, and damaged reputation.
- Broker Success: For the broker, this was a critical win. They provided their client with a fast, tailored solution that preserved their business and demonstrated their value as a trusted financial partner.
For Borrowers:
This case study demonstrates that a temporary cash flow delay doesn’t have to derail your entire operation. A Short-Term BLOC from Secured Lending offers the rapid, flexible capital you need to keep your projects on track and maintain your reputation. You only pay for what you use, when you use it, making it an efficient solution for short-term gaps.
For Brokers:
This scenario is common in construction. Offering a Short-Term BLOC empowers you to be the hero for your clients, delivering fast, purpose-built financing when traditional lenders can’t keep up. It strengthens your client relationships and expands your toolkit for urgent, high-impact solutions.
Don’t let payment delays or unexpected expenses slow your business down. Contact Secured Lending today to learn how our Short-Term BLOC can provide the immediate capital your clients need.
