Fire Protection Company

Middlesex County, MA

Clubhouse Capital secured a $2.0 million revolving line of credit for a well-known Massachusetts fire protection contractor. The working capital line helped fund the Company’s growth, which was being driven largely by the increasing pace of commercial and multi-family development within the Metro Boston area. The underwriting was challenged by the fact that over 95% of the company’s business involved progress billings to regional general contractors. In addition, the company was owed over $600k in retainage. Clubhouse was able to structure a credit facility that extended credit to the Company against its earned retainage (at a lower advance rate), and utilized an internal confirmation mechanism to mitigate the risk posed by the progress billings. (Summer 2015)