Financing the equipment behind electrical projects
A Michigan-based electrical contractor procures equipment such as transformers and switchgear for its work. Its financing need centred on the upfront payments required by vendors and the working capital needed to support those purchases.
An additional option alongside an existing lender
The business was part of a group that already had a primary lender. It approached Drip Capital while looking for an additional financing option to support upfront vendor payments. The need was specific: more working capital available for procurement.
From an approved line to financing in use
Drip Capital approved a $400,000 Vendor Financing line. The business subsequently began using the facility, with multiple invoices recorded as advanced in Drip Capital’s invoice system.
This takes the story beyond an approval alone: the facility moved into use against vendor invoices, connecting the additional financing capacity to the procurement need identified during the application process.
The approved facility
The $400,000 figure represents the approved credit limit. It is separate from the amount used or disbursed under the facility.