“My business, like most young businesses, had limited financial resources, so I was limited in the number of projects I could perform,” said Tyrone Bailey, owner of Bailey’s Construction. Bailey launched his trucking and hauling business in 2012 after years in the industry. As his reputation grew, he began receiving more offers to become the prime sub-contractor for many projects. This meant he needed the working capital to cover costs—like fuel and labor—up front while waiting 30-45 days for customers to pay for the work. On top of that, he was looking to grow, but was unable to secure affordable financing from a bank due to a low credit score.
Bailey approached Ascent Funding (formerly Albina Opportunities Corporation), a CDFI based in Portland, Oregon. Ascent Funding, which provides under-banked and underserved business entrepreneurs access to capital, extended both a line of credit and an equipment term loan to Bailey’s business. The line of credit provides Bailey’s Construction with additional working capital, and the term loan will enable Tyrone to expand his fleet.
“Together, both credit facilities will provide Bailey’s Construction with the ability to significantly expand his business,” said Robin Wang, Executive Director of Ascent Funding.
In addition to providing the capital, Ascent Funding’s Business Advisory Services is working with Tyrone to improve his financial management skills and credit history so this growing business can one day secure traditional bank financing.
(Date of loan: 2016. Date of story publication: February 2017)