IT SOLUTIONS $400,000 BC (Factoring)
An IT expert with many years of experience decided to get into business for himself. He found some partners, put in some money and did $1 million in sales the first year. Half way into the second year they were at $3,000,000 in sales and ran out of working capital. They did not have the equity or history that traditional lenders required. Soon their suppliers were refusing to ship on open account terms and orders were piling up. After an FVF presentation their banker knew just where to refer this company. FVF helped them to negotiate with their suppliers by providing a vendor assurance letter and with a Full Service Factoring facility in place they continue to grow to this day.
Truck Repairs $100,000 ON (Factoring)
A repair shop for trucks and equipment primarily for companies with a fleet of vehicles was referred to us through a fellow BNI member. A need for financing was prompted by a change in their bank’s ability to continue with an unsecured line of credit. They were asking for a full payout of the line. The client was not able to make this happen quickly but persevered until he had built up adequate A/R for FVF to pay out the bank. Now the client can comfortably make payroll dates and CRA needs without scrambling. They are even considering hiring another mechanic and hope to increase sales.
TRUCKING COMPANY $1,000,000 BC (Factoring)
A trucking company in the oil and gas service industry had a $250,000 LOC with their bank and A/R over $850,000. Desperate for more working capital they continuously applied with their banker for a larger LOC. If they didn’t bring their fuel bill up to date soon the supplier would cut them off. Their debt service ratio was off due to the recent purchase of new trucks and the owner continued to shop around for a larger LOC. Finally one banker advised him to contact FVF and we were able to quickly provide them with a $500,000 factoring facility. Five months later it was increased to $1,000,000. The last we heard the owner was moving all of his accounts to the referring bank.
Safety products $400,000 ON (Factoring)
Our client’s need was prompted by rapid growth due to changes in their industry. Many similar companies had merged or closed which left them as one of the only solid suppliers to a short list of very large customers. Growth potential could not be financed through a traditional bank line and they brought in a consultant. A new bank was found to provide some funding against equipment and FVF was brought in to finance the A/R under a Non Notification factoring facility. Now they can continue to strengthen their good supplier relationships and meet those all important delivery deadline.