Monarch
Payment delays shouldn’t stop growth
Monarch is a New York contractor that works on large public infrastructure projects. As build season ramped up, the business needed working capital that could adapt across completed work, active WIP, and new projects.
As finished work waited on payment and new opportunities emerged, Monarch Construction needed a capital stack built for changing conditions.
The Situation
For project-based businesses, the hardest pressure often comes after the work is done.
Monarch had completed a major state project and was waiting on a $3M receivable tied to that job. The invoice had stretched beyond 150 days, creating a capital gap in their cash flow.
Meanwhile, active work kept generating its own need for funds. Crews, materials, and new opportunities all needed to be paid for despite the wait for work completed. The company was having to get creative with cash flow in order to meet obligations, while additional work continued moving closer.
The Challenge
Monarch needed capital that could bridge the receivables gap while preserving access to additional liquidity as more contracts came in.
The business wanted to avoid straining its senior line or overcommitting beyond what the situation demanded. It also needed a structure that could keep access to capital open as build season continued and new projects came into view.
That’s when Monarch began exploring alternative options and connected with National Business Capital. A dedicated Finance Business Advisor, Neal, sat down with the company to understand the full picture: a strong reputation, substantial project activity, delayed payment on completed work, and more contracts on the horizon.
The business had proven demand. It needed a capital structure flexible enough to support it.
National structured the financing in phases as the company’s needs evolved.
In February, the immediate priority was bridging the gap between completed work and delayed payment. Monarch secured $1M on a Flex Line to supplement its existing senior line of credit, keeping working capital flexible and available while waiting for checks to arrive and clear.
Two months later, the conversation had changed. With two major contracts preparing to begin work, the priority shifted from bridging delayed payment to supporting current WIP and upcoming expenses.
Because Neal and the National team already understood the business, its cash flow, and its operating capacity,
National was able to quickly structure a t $500K uncollateralized term loan around projected cash flow..
With the $1M draw from the Flex Line and the $500K uncollateralized term loan, Monarch was able to:
- Preserve working capital during an extended receivables cycle
- Supplement its existing senior line of credit
- Support current WIP and upcoming contract activity
- Begin two additional projects during build season
The first funding helped bridge the gap between completed work and delayed payment. The second gave the business the liquidity to support the work ahead.
Why This Works
Working capital pressure rarely comes from one event. It builds as delayed receivables, active WIP, and upcoming projects begin competing for the same available cash.
For Monarch, the advantage was a structure that addressed each stage as conditions changed. The Flex Line created room during the payment delay, while the term loan added capacity for the next phase of work.
That flexibility helped the business keep moving without overextending its senior line or committing to more capital than the situation demanded.
Why National Business Capital
National looks beyond the immediate capital request to understand how the business operates, where pressure is building, and what may come next.
For Monarch, that meant working with Neal, a dedicated Finance Business Advisor who understood the company’s project flow, receivables cycle, senior relationship, and capacity for additional work.
For contractors and industrial businesses, access to capital is only part of the equation. The greater value comes from having an advisor who can help align the structure with the business as conditions evolve.
Capital kept expansion delay from derailing
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