https://www.youtube.com/watch?v=mT43r41dMB0
Powering project continuity for public sector contracts
with A/R Financing
CLIENT OVERVIEW
Headquartered in Trenton, New Jersey, this mid-sized civil infrastructure construction firm has built a strong reputation for executing large-scale transportation projects across the Northeastern United States. Their portfolio includes interstate highway construction, bridge rehabilitation, and public transit system expansions.
The company was actively engaged in multiple major contracts, many funded through state and federal government programs. However, structural changes in public budgets soon created serious operational challenges.
THE CHALLENGE
The firm encountered a sharp increase in payment delays as increased government focus on efficiency impacted established contractual arrangements. This resulted in administrative cutbacks, funding realignments, and extended invoice approval cycles. Although construction continued on schedule, receivables stretched beyond 120 days, creating severe cash flow pressure. With significant upfront costs for subcontractor payroll, equipment leasing, and materials, the company risked project disruptions, missed milestones, and potential penalties, threatening both operational continuity and its reputation with government clients.
THE SOLUTION
The company partnered with eCapital to implement a fast, flexible financing solution to avoid disruptions.
- Financing Facility: A $35 million accounts receivable (AR) financing line was structured based on the company’s invoiced—but unpaid—receivables from public sector clients.
- Immediate Liquidity: This facility allowed the business to convert slow-paying invoices into working capital, providing cash flow certainty without taking on long-term debt.
The funding was tailored to support large, phased infrastructure projects with long billing cycles and government payors.
THE RESULTS
The AR financing facility produced rapid and tangible benefits. The firm met all payroll and subcontractor obligations, avoiding work stoppages. Enhanced liquidity enabled the timely leasing of heavy equipment and purchasing of critical construction materials to keep contract schedules and obligations on track, avoiding penalties and preserving its reputation with DOTs and transit authorities.
Accounts receivable financing offers a powerful way to unlock trapped cash, support day-to-day operations, and maintain momentum on large-scale projects. With eCapital’s $35 million AR facility, this Trenton-based infrastructure firm stayed on schedule, protected its workforce, and continued building the essential infrastructure that powers the Northeast corridor.
The company is now positioned to take on new public contracts with greater confidence and a more resilient funding model.
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