A contractor bridges a slow-paying receivable

The challenge

What the business was up against

A commercial contractor had completed a phase of a large project and submitted a sizable invoice, but the client's payment terms ran 60 days. In the meantime, the contractor needed to make payroll and buy materials for the next phase.

The business was profitable; the problem was pure timing. Most of its capital was tied up in receivables it couldn't yet collect.

The solution

How we structured it

PIRS reviewed the contractor's bank statements and the consistency of its deposits across prior projects, rather than focusing on the single outstanding invoice.

We structured a $180,000 advance with weekly remittances, a better fit than daily debits for a business with lumpier, milestone-based cash flow.

The reconciliation provision meant that if a project gap slowed deposits, remittances would adjust accordingly.

The outcome

What happened next

The contractor made payroll on time and kept the next project phase moving without waiting on the slow receivable.

When the invoice was paid, the business was well ahead of schedule on delivering the advance.