How We Helped a Growing Construction Company Save $840,000 Per Year Through Strategic Debt Restructuring

The Client

Our client was a seven year old construction company experiencing rapid growth and expansion. Demand for their services was increasing, projects were coming in consistently, and revenue was growing year over year.

From the outside, the company appeared to be thriving.

However, behind the scenes, financial challenges were beginning to threaten the long term health of the business.

Construction business owner reviewing debt restructuring plan with financial advisor to reduce monthly debt obligations

The Challenge

Like many growing construction companies, our client had experienced several years of growth without implementing the financial systems necessary to support that growth.

A combination of estimating errors, shrinking project margins, and poor financial management decisions created a situation where the company had accumulated significant short term debt obligations.

At its peak, the company was responsible for more than $160,000 per month in debt payments.

While revenue continued to grow, a substantial portion of the company’s cash flow was being consumed by debt service. This limited the company’s ability to invest in equipment, hire key personnel, improve operations, and pursue new opportunities.
The business was generating revenue, but profitability was being squeezed by excessive debt payments and poor cash flow visibility.

The ownership team knew they needed a solution before the problem became unmanageable.

Our Approach

As the company’s Fractional CFO, our first objective was to gain a complete understanding of the company’s financial position.

We conducted a detailed review of:

  • Existing debt obligations
  • Interest rates and repayment schedules
  • Cash flow patterns
  • Historical project performance
  • Estimating practices
  • Working capital requirements

After identifying the root causes of the company’s financial pressure, we developed a two part strategy.

Step One: Build a Dynamic Cash Flow Management System

The company lacked visibility into future cash requirements. We implemented a dynamic cash flow forecasting process that allowed leadership to anticipate cash needs weeks and months in advance.

This provided greater confidence in decision making and allowed management to identify potential cash shortages before they occurred.

Step Two: Create a Debt Restructuring Plan

Once we had a clear picture of the company’s financial position, we developed a comprehensive debt restructuring strategy.

This included:

  • Organizing and presenting accurate financial statements
  • Building detailed cash flow projections
  • Demonstrating the company’s ability to service debt under revised terms
  • Creating a clear financial improvement plan

We then worked directly with banking institutions to present the company’s financial story and negotiate more favorable lending terms.

The Results

The results were significant.

Through strategic debt restructuring and improved financial planning, the company successfully secured new financing arrangements with lower interest rates and more manageable payment terms.

As a result:

  • Monthly debt payments were reduced from more than $160,000 per month to approximately $90,000 per month
  • The company improved monthly cash flow by approximately $70,000
  • Annual savings exceeded $840,000 in the first year alone
  • Leadership gained greater visibility into future cash flow needs
  • The company was positioned for sustainable growth moving forward

Most importantly, the ownership team could shift their focus from financial survival back to growing the business.

Fractional CFO helping a construction company improve cash flow, reduce debt payments, and increase profitability

Key Takeaways for Construction Companies

Many construction companies mistakenly believe that revenue growth alone will solve financial challenges.

In reality, growth without financial discipline can create additional stress on cash flow, debt, and profitability.

If your construction company is experiencing:

  • Cash flow challenges
  • Rising debt obligations
  • Shrinking profit margins
  • Difficulty forecasting future financial needs
  • Rapid growth that feels difficult to manage

It may be time to bring in strategic financial leadership.

How Barta Business Group Can Help

At Barta Business Group, we specialize in helping construction companies build stronger financial foundations through Fractional CFO Services.

From cash flow forecasting and debt restructuring to profitability analysis and strategic growth planning, our team helps construction business owners make confident financial decisions that improve long term performance.

If your company is growing quickly and you want to ensure your finances support your growth instead of holding it back, contact Barta Business Group today to schedule a consultation and learn how our Fractional CFO services can help your business thrive.

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