Capital use · Working capital & restructuring
We are not a lender. Sometimes that is exactly what a working-capital problem needs.
- Not a lender
- Equity behind your bank
- Bonding & seasonal capacity
- Candid about fit
Blue Ring Venture Capital does not lend and offers no lines of credit. Members provide equity of $50K–$5M per company when a working-capital problem is really an equity problem — a bonding line capped by net worth, a seasonal business that has borrowed against next year, or a lender that wants to see equity before extending credit. If a bank, BDC, a CFDC or a restructuring professional is the right answer, we say so.
Which tool fits which problem
| The problem | Usually the right tool | Where an equity partner helps |
|---|---|---|
| Receivables take 60 days, payroll is weekly | Operating line, invoice factoring | Rarely — unless the line is capped by covenants |
| Bonding capacity capped by working capital and net worth | Equity injection — sureties count equity, not debt | Yes: equity raises the bonding line; members understand construction cycles |
| Seasonal business borrowed against next season | Restructure the debt, then equity | Yes, once the plan is credible |
| Lender wants equity before it will refinance | Equity | Yes — often alongside the refinancing |
| Losses with no clear cause | A restructuring professional, not new capital | No |
| A merchant cash advance is eating the margin | Refinance with a term lender; stop the MCA | Sometimes, if the underlying business is sound |
| Growing faster than retained earnings | Growth capital | Yes — see the growth page |
Bonding, specifically
For contractors, equity is bonding capacity.
Sureties set single-project and aggregate limits from working capital and net worth. Debt does not help; it often hurts. A $300K equity injection can raise a contractor's aggregate bonding program by $2M–$4M, which is the difference between bidding the institutional job and watching a competitor take it.
Our members include people who have run bonded contracting companies. They know the surety's questions, the work-in-progress schedule and the difference between a cash-flow problem and a margin problem.
- Equity that sits on the balance sheet and stays there
- Members who can read a WIP schedule and a bond letter
- Structures with a dividend that flexes with the season
- A board member who has met the surety before
When to call someone else first
If the company is behind with the CRA, cannot make payroll this month, or has losses without a clear cause, new capital is not the first step. A licensed insolvency trustee or a restructuring advisor is, and a candid conversation with your lender. Our members have been through downturns and will happily talk — but capital comes after the plan, not instead of it.
Working-capital questions
Do you offer revenue-based financing?
Members sometimes use a revenue note — a fixed share of monthly revenue until a cap is reached — as one of their structures. It is an investment by individual members in a company they have put through diligence, not a product, and it is not offered on its own as a quick working-capital loan.
How fast can this happen?
Not fast enough for an emergency. Four weeks is the minimum from application to closing when everything is in order; 8–12 weeks is typical. If you need money in two weeks, talk to your lender and a CFDC today.
Will you refinance my debt?
No. Members invest equity or quasi-equity; the proceeds can be used, in part, to reduce expensive debt as part of a plan the lender supports. "Refinancing debt" on its own scores low in our published criteria.
Related reading
Reviewed 2026-09-13
Bank loan vs BDC vs revenue-based financing vs operator-investor: which fits?
For a $1M–$25M-revenue company, six financing shapes are realistically available: bank term debt, government-backed loans, BDC or mezzanine, grants, revenue-based financing, and equity from operators. Each has a different cost, speed, dilution and personal-guarantee profile, and most good outcomes combine two of them.
Read moreReviewed 2026-09-13
Capital structures explained: preferred shares, revenue notes and loans with warrants
Three structures do most of the work in minority investments into established businesses: preferred shares with a dividend and buy-back, a revenue-based note, and a shareholder loan with warrants. Each pays the investor from cash flow rather than only from a sale, and each fits a different revenue pattern.
Read moreReviewed 2026-09-13
The diligence-prep checklist: what investors ask for, and when
Investor diligence on a $1M–$25M-revenue company asks for about forty documents across six categories, collected in stages. Nothing sensitive is needed to apply; financial statements come before the member working session; contracts, references and a site visit come in the final four to six weeks.
Read moreTalk to people who have done this
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Written by The Blue Ring Venture Capital team. Last reviewed .
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