Not every business model is a fit for invoice factoring. Some companies are better off with a credit line where they take draws whenever needed. Although we specialize in getting prospects to the right factoring company to fit their needs, we also have line of credit partners. A home healthcare facility in Florida contacted Factor Finders in need of fast funding. They recently got set up with a new provider that delays payments up to 90 days and needed to make payroll. The quickest and most cost effective option for them was the line of credit, which features an approval decision in 24-hours.
Once the prospect determined that a short term solution was all that they needed, we made a quick introduction to our LOC partner. They were able to walk the prospect through the requirements and sign up process. Once the prospect submitted all of the needed documents, they were notified of their approval and granted a $75,000 twelve-month credit line. All the prospect needed to do afterwards was sign into their online account and begin drawing! Lines of credit are great programs for small businesses that have poor debtors, don’t invoice, or need next day funds.
In the wake of the natural disasters affecting the south, we have received many calls from trucking companies taking on debris clean up jobs. An owner-operator in Texas called us looking to switch from her current factoring company. She had just signed up to receive loads from the Federal Emergency Management Agency (FEMA), but her current factor was not comfortable providing funding for these type of invoices. Some factoring companies stray away from government debtors, as they can be slow-paying. The prospect was looking for a new company to take on her account as quickly as possible, as she had over $15,000 in outstanding invoices.
Luckily for the prospect, we have many funders in our portfolio that have worked diligently with FEMA and disaster relief projects. After reviewing the needs of her business, we got her in contact with an account manager that could handle the task. The prospect was quickly approved, and the next step was to file for termination with her current factor. After some push back on waiving their 30-day notice policy, the current factor allowed the prospect to be released. The new funder processed a buyout, and was able to get everything moved over to factor the prospect’s FEMA loads in just a few short weeks.
A call we get often at Factor Finders is from businesses that are currently factoring, but are unhappy with their rates. A vitamin packaging company in Utah contacted us in need of a competitive quote. However, there was a problem. The prospect’s only client doesn’t pay for 70-75 days. With $40,000 a month in receivables, the extended pay period made it difficult for their small factoring company to keep rates low.
As a team, we put our heads together to find the right factor for the packaging company. We needed to find a factor that was flexible enough to take on the lengthy pay period, while keeping rates at a price the prospect could afford. We introduced the prospect to a larger west coast funder that was able to fulfill both needs. In addition, the factor provided a smooth transition and got their first set of invoices funded in under a week.
A message from the prospect to Factor Finders: “The factor was a great referral and we have decided to transfer all of our business to them. Thanks for your role in making this happen. We are very excited about moving forward with this team.”
As many business owners know, it only takes one slow payment to pull a company out of its comfort zone. A pallet brokerage located in Illinois reached out to us looking for a factoring company to help with a slow paying customer. The customer is invoiced $10,000 every week, and pays sporadically. The busy prospect wanted this issue taken care of quickly, as they were growing at a rapid pace. They did not want to pause building their pallet manufacturing network, nor did they have the time to research and compare quotes from different factoring companies. The uncertainty of payment times encouraged the prospect to give us a call.
Understanding that this was a time sensitive matter, we immediately live transferred the prospect to one of our long-time and flexible funding partners on the east coast. Our partner was able to get him qualified, approved, and funded in a few weeks’ time. Thanks to the introduction made by Factor Finders, the pallet brokerage continues to grow its network and keep a mutually beneficial relationship with their slow-paying customer.
It’s fairly common for business owners to call Factor Finders looking for a factoring program with no minimum volume requirements. Plenty of companies want to factor invoices on an as-needed basis without facing a penalty for not factoring a certain dollar amount.
Recently, this type of call came from one of our valued funding partners. The funder contacted us to refer a new prospect, a long-time client who no longer fit his portfolio because of the erratic funding schedule the client required. The prospect, a West Virginia-based drilling company, provided drilling services to energy companies. This prospect didn’t want to factor for every customer and only factored on a selective basis. Some months he had no need for factoring. However, when he did factor, it involved invoices with widely varying amounts. Sometimes he chose to factor an invoice for $10,000, other times for $90,000. There was little consistency and the factor never quite knew what to expect. In addition, the prospect had an active merchant cash advance as well as an IRS payment plan.
Since the prospect required factoring for multiple invoices, an ongoing relationship with a funder was necessary. Although the prospect and the current funder maintained a positive relationship, it wasn’t an optimal match for either party. It was too much of a square peg to their round hole. Simply put, the prospect needed a factoring company that was flexible and comfortable with the unpredictable nature of his business.
Factor Finders got down to business. We introduced the prospect to a factor that was willing to take on the unpredictable nature of the funding requirements and was also familiar with the oil and gas industry. The new factor happened to be acquaintances with the previous factor, which made the whole transition run very quickly. With the help of Factor Finders’ diverse industry knowledge and funder relationships, the drilling company never skipped a beat.
The owner of a healthcare staffing agency in Miami, Florida reached out to Factor Finders for help funding $125,000 in weekly invoices. The invoices belonged to a single customer that paid on 90+ day terms. The prospect was working with another factoring company, but his current factor was unable to extend the necessary payment terms to accommodate this customer. The inability to factor for their primary customer made it difficult to cover their payroll and tax obligations. With the prospect’s current factoring contract coming to a close, a new factoring company could easily begin a buyout of the existing agreement.
It was necessary for this prospect to partner with a factoring company that was comfortable working with a single customer that generated a large volume of weekly invoices. In addition, a familiarity with the healthcare industry and lengthy payment terms was essential for a successful factoring relationship.
After learning more about the staffing agency’s goals, Factor Finders matched this prospect with a factor that could handle the large volume and was comfortable with the in-depth underwriting process necessary to approve the customer. The factoring company met with the prospect face-to-face to ensure a mutually beneficial partnership. They worked quickly to identify the right cash flow solution for his business and facilitate the buyout process to avoid incurring additional fees from the buyout of the previous agreement.
Thanks to Factor Finders’ help, the staffing firm was up and funding in no time. The new partnership has been a success. The prospect’s agency is able to pay employees and cover other expenses with ease.
A Honolulu, Hawaii healthcare staffing agency reached out to Factor Finders to help them solve some challenging cash flow complications. The client was experiencing incredible growth due to becoming the preferred staffing provider for a major healthcare system. In addition to billing $40,000 a month, the client was also working towards their Medicaid accreditation. While experiencing rapid growth, the client was unable to keep up with 60-day customer payment periods.
Clients in Hawaii can be challenging because of their unique time zone. While it’s not required for clients to be a in the same time zone as their funding source, it makes communication that much easier. This particular client was turned away from six different funders because of their inability to communicate with the factoring companies on a daily basis.
After learning about the problems and opportunities this business owner was facing, Factor Finders was able to match him with a funder who fit his needs. The factor was not only comfortable working with a Hawaiian client, but also had extensive knowledge about funding small healthcare staffing agencies. The client was able to receive financing to pay his employees and meet other expense deadlines while expanding his business. Despite having a six hour time difference, Factor Finders found the business owner a west coast funder that was creative enough to get the client exactly what he needed.
Many business owners struggle with gaps in cash flow between finishing a job and receiving payment. Recently, the owner of an electrical maintenance company contacted Factor Finders for help securing additional funding to alleviate the cash flow challenges caused by slow-paying customers. Her Baltimore, MD-based business was undergoing a growth spurt and seeking capital to keep pace with rapid expansion. She was billing property management companies around $25,000 per month. Her clients paid on 60-day payment terms, which is typical for this industry. She was hoping to free up additional capital to take on more projects and open up new locations.
Property management companies can be difficult customers to approve for factoring. They typically pay on long payment terms, sometimes 60 or more days. The invoices are often for smaller dollar amounts. Also, client notification can be problematic. Not all property management are willing to work with factoring companies.
After learning about the prospect’s business, Factor Finders put our expertise to work. We instantly introduced her to a factoring company that was comfortable working with property management firms. The factor worked quickly to get her business approved for factoring. In no time at all, the business began factoring invoices. With a steady source of working capital, the company is already on its way to opening a new location. Plans are underway to open even more locations in the near future.
Thanks to extensive experience with complex deals, Factor Finders had the ability to instantly locate the optimal funder to meet our prospect’s unique business needs. Factor Finders is committed to helping business owners alleviate their financial challenges so they can return to what’s important – running a successful business.
A staffing agency recently contacted Factor Finders with some tough challenges. They only billed one client, which happened to be the state of Pennsylvania for $40,000 per week. They had a $150,000 line of credit with their current lender that they depended on weekly to make payroll. The prospect soon became aware that their lender was going out of business and as a result, their line of credit had been frozen. The staffing agency had less than a month to find a new funder and get set up with their process.
The prospect knew they’d need cash for their next payroll and was in search of someone who could provide them quick funding and an easy transition. Fearing that they wouldn’t be able to make payroll, the prospect reached out to Factor Finders to help find a new funding solution as quickly as possible.
We went through our large list of qualified funders to see who would be comfortable funding 100% debtor concentration, as well as working through a buyout in such a short amount of time. We were able to match this prospect with a factoring company who had widespread knowledge on how to deal with this type of situation. The factor contacted the prospects’ current lender and worked directly with them to guarantee a smooth and hassle free buy out process for the prospect, in their short time frame.
Our extensive industry knowledge helped us successfully pair the prospect with the right factoring company to fit their needs. Factor Finders helped to get the deal funded quickly to ensure the prospect had enough working capital to effectively run their business.