About the Company

Based in Central Texas, our client offers commercial roof repairs, full roof replacement, modified bitumen and metal roofing.

The Situation

In 2021, the Central Texas hail storm led to a surge in the roofing business and our client increased manpower to meet demand.

However, a subsequent drought combined with market conditions decreased revenue and profit margin. This decline in revenue is expected for companies that experience sudden spikes in business due to natural disasters or other catastrophic events, but without proper contingencies, adjusting back to “normal” business volumes can be difficult.

And the company never adjusted.

Coupled with the decrease in revenue and the company’s extensive overhead from the previous year, they unfortunately had to make a reduction in staff.

Needing more cash flow, private credit seemed like the best option.

The Solution!

Flatbay Capital met the client where they were at, giving them that extra cushion to grow.

“The successful inception of this deal can be attributed to the invaluable partnership with Vince Calicchia from Community Business Finance in Houston. Without his referral and support, this achievement would not have been possible. This deal was a triple win, one for our roofing client, Community Business Finance, and our team at Flatbay Capital.” - Vivian Thompson, BDO/Partner of Flatbay Capital.

We were able to fund a $1MM owner-occupied commercial real estate bridge loan that will provide additional working capital for the company to expand their operations and invest in new equipment. The company's debt will be manageable in the future, taking into account current revenue and debt restructuring efforts.

A big thank you to the client for partnering with Flatbay Capital! We can’t wait to see them return to mainstream banking!