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Having won a State Contract with a Department of Natural Resources a contractor whose business had slowed down was suddenly confronted with a good problem: Contracts. The only tough part was that his bank lines had been curtailed with the economic slow down so he was challenged to fulfill and perform with no working capital. If you know of someone that overcame similar issues please share situations that you might know of with a blog of your own! That said with his only asset being a piece of raw land we created a working capital line of credit against the property and he fulfilled the contract on time and without missing any deadlines. What made this complicated? Face it: Who would lend on raw land when literally no one was building? Considered a ‘hard money loan’ this loan was placed in a first position lien/UCC1 on the property and was completed in a rather short amount of time. The important part was the contractor had access to the funds he needed to buy materials and meet payroll through to his first draws from the State … and the timing worked well! Working with the contractor we reviewed his contracts and his history of fulfillment and ...