The Business

This general contractor has spent eight years building a solid reputation in the Los Angeles remodeling market, completing both commercial and residential renovation projects. The company generates approximately $3.1M in annual revenue with a strong pipeline of projects and a loyal client base that trusts their craftsmanship and project management.

Growth was steady, but the owner identified a significant opportunity: larger commercial remodel projects were available, but they required specific heavy equipment—an excavator and dump trucks—that the company didn't currently own. These projects promised higher margins and longer contract terms, but the owner needed the equipment immediately to bid competitively.

The Challenge

The owner faced a classic growth dilemma: needed equipment to pursue lucrative projects, but didn't want to deplete operating cash reserves with a large down payment. Traditional equipment financing options required 15-20% down, which would have tied up $50,000-$60,000 in cash. Additionally, the company had a tax lien from 2022 that was on a payment plan, which caused rejection from several mainstream lenders who viewed it as a compliance risk.

Pain Points

  • Required excavator ($160K) and dump trucks ($120K) to pursue new projects
  • Wanted 100% financing to preserve operating cash reserves
  • Tax lien from 2022 on a payment plan rejected by some lenders
  • Needed equipment delivered within weeks, not months

The Mondra Capital Approach

We identified an equipment lender that specializes in financing for contractors and construction firms, even those with tax liens on payment plans. The key insight: once a payment plan is in place and the business is complying with it, many specialized lenders treat that as satisfactory tax compliance. The tax lien itself isn't an absolute disqualifier if the borrower is actively addressing it.

We structured the deal as a 60-month equipment-secured loan at 100% financing, meaning the full $280K was financed with no down payment required. The equipment itself served as collateral, and the lender's underwriting focused on the company's revenue stability, project pipeline, and the equipment's residual value. The owner's credit profile was solid aside from the tax lien situation, and the business financials clearly supported the equipment purchase.

"The tax lien from 2022 was holding me back everywhere I went. Mondra explained exactly what lenders look for and found one that worked with us." Owner, General Contractor, Los Angeles

The Outcome

Results Achieved

  • $280K financed at 100% with zero down payment
  • 60-month term with $5,200/month payment
  • Equipment delivered and operational within 10 days of approval
  • Landed $600K commercial remodel project within 30 days
  • Enhanced capacity for future mid-sized commercial work

With the equipment in hand just eight days after approval, the contractor was able to bid on projects that had previously been out of reach. Within 30 days, the company secured a $600K commercial remodeling contract that specifically required the type of equipment they'd just financed. The project ran for six months and generated healthy margins. By month nine, the equipment had essentially paid for itself in project profits, and the company now has the capacity to pursue larger commercial opportunities with confidence.

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