Al Alexander ander Pe Perry, Inc. nc. Background: • In May 2015, Capstone met with a successful MWBE owned construction management and design build firm located in Philadelphia, PA • Clients: Comcast, Philadelphia Chamber of Commerce, Philadelphia School District, and Marriott • Total funding to date: $550,000 Company Challenges: • Client was successfully bidding and winning large contracts for construction management and interior design services but could not afford to finance with their existing cash flow • Client also sought to expand their services regionally and internationally FACTORING Capstone | 2016 | 13
Al Alexander ander Pe Perry, Inc. nc. Capstone’s Solution: • Provided a two year $30 million Master Factoring Facility to provide working capital required for supporting a larger volume of contracts • Provided letters of financial support to supplement the client’s bid during the bidding process Progress and Future Outlook: • Awarded an additional two year contract extension with their main client and is now in the process of adding additional personnel on the project • Anticipates being awarded an additional $7 million in new contracts with their main customer • Client has been able to bid on much larger contracts including Amtrak’s façade construction management project at the Philadelphia train station (approx. $10 million project) and the Temple University Library ( appr approx. $7 $7 million llion pr project) oject) FACTORING Capstone | 2016 | 14
Met Metro Er Erect ectors, In Inc. c. Background: • Locally owned and operated full fabrication and erection service company of structural steel and is NYC’s largest plank erector • Projects consist of large residential and commercial buildings located throughout New York City • Clients: Two major plank manufacturers on the East Coast • Since August 2015, the company has factored over 120 invoices ranging from $8,000 to $90,000 • Total funding has been $3.5 million Company Challenges: • Growth significantly outpaced cash flow and because of this the client was forced to turn down work from its two main customers • The company struggled to make payroll and timely payments to vendors FACTORING Capstone | 2016 | 15
Met Metro Er Erect ectors, In Inc. c. Capstone’s Solution: • Provided a Single Invoice Factoring Facility to inject the working capital required for supporting a larger volume of contracts • Increased customer credit line by over 100% within 6 months of the relationship Progress and Future Outlook: • Cash flow constraints have been drastically eased and now the client can focus on taking on a higher volume of projects for its customers • Business volume has tripled since the client started factoring FACTORING Capstone | 2016 | 16
En Enterprise rprise Consul Consulting ng Ser Services, ices, In Inc. c. Background: • Incorporated in 2004, ECS offers software development, IT Solutions and Staffing to a number of clients in the USA • Factored Sales for the period ending 12/31/15 were $2,425,992.49. Sales for fiscal 2016 are projected to increase to $2.6M Company Challenges: • To meet payroll requirements. • Increase revenue FACTORING Capstone | 2016 | 17
En Enterprise rprise Consul Consulting ng Ser Services, ices, In Inc. c. Capstone’s Solution: • On February 25, 2015 Capstone provided a 2 year Factoring Facility so the company could meet its payroll requirements and increase sales Progress and Future Outlook: • Job performed was a great success for both the owner and Capstone leading to repeat business • The company is confident it can bid on larger jobs even those it does not have capital for • Capstone looks forward to assisting the company in the future and fueling their growth FACTORING Capstone | 2016 | 18
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