How Accounts Receivable Factoring Assists Businesses
Hi Phyllis Rector. Yes, you have at least one other video of me so far. But, I wanted to tell you an anecdote about a customer that we have, a client of ours that we assisted through accounts receivable factoring. Usually, we target companies with about 250,000 up to 5 million in sales as our clients.
But, let me tell you, this recession has opened up more opportunities for us and last fall, actually last December, we financed a windows installer, distributor and installer, who in 2008, for the first 6 months, had earned $8 million worth of business. Then, he had orders on his books, you know contracts signed but as you are aware of in construction, often those contracts do not mobilize and he had a whole lot of stuff on his books. It didn’t mobilize. His rivals went out of business. He put his show and building up for sale. And then actually, unsolicited, he had a major general contractor come to him wanting him to do provide the windows and install them for a mixed use commercial and residential project.
Surely, this guy said yes. So, time came when you know, the buildings up and they got to install the windows. His supplier, however, said that they’ll ship the windows Cash on Delivery. What’s the guy going to do? Well, thank goodness, you know he contacted one of my associates who called me – so I went over and I talked to him and we’re able to come up with a transaction where we could advance him money so his supplies did get shipped and his supplier was paid as agreed. Our client, the windows installer, finished the installation, billed his general contractor, took that over. We waited about fifty days, got paid, rebated it back to him, the difference between the discount and our fee, kept him in business.
So just as a reminder, we do have some minimum requisites and they are pretty basic. Our clients should have at least two customers, and they should be in at least a $20,000/month run rate in revenues. So, if your business has suffered, but you are starting to grow out of it, and you need some financing or you even think you’re going to need some financing, give me a call. Nothing beats the early bird, they say; with this, you will be able to take on that big order as soon as it comes. So call me, email me, whatever way, do contact me. We at the Interface Financial Group would love to try to assist you.
