Springtime and Small Business

It was 75+ Degrees here in the Northeastern US last week, and no matter where you stand on global warming, I think we can all agree those are Spring-like temperatures!  Whether Spring is here to stay or not, we’ve definitely experienced an uptick in funding requests from our more seasonal clients as they prepare for the warmer weather and the bounce in business that comes with it.  Here are two quick case studies on businesses we funded over the past week, who were both looking to get a jump on their busy season…

On Firmer Ground (financially speaking!)

A small concrete contractor needed funding to purchase new equipment, make payroll for a week, and some extra working capital to help him ease into the first few projects of the Spring.  The business generated a steady income over the Fall and Winter months, but revenue was significantly reduced from seasonal highs, leading to cash flow issues from week to week.  The tight cash flow and short time in business, combined with the business owner’s fair to poor credit, made the chances of receiving a secured bank loan remote.

We were  able to get the business approved for a working capital advance of up to 75% of gross monthly revenue, allowing the business to use the proceeds to finance its upcoming first big job of the year.  A shout out to our Document Coordinator Phil who worked with the business owner over the course of a weekend to make sure we had all the proper documentation to close the deal!

Early Bird Catches the Worm (or in this case, a big discount!)

An industrial parts supplier in the Midwest was looking to stock up on inventory for his more seasonal customers, as he knew they’d soon be placing orders.  With his long time in business and excellent credit, the business owner already had a line of credit established with his long-time bank, but did not want to utilize additional credit through the bank in case another opportunity presented itself.

However, he needed some funds quickly to purchase materials to supply the parts that his customers will soon be calling for.  We were able to secure an approval of up to $170,000 over a 15-month term for the business, and with the owner’s excellent credit and successful track record operating the business, the advance is eligible for a pre-payment discount reducing the total cost of the funds to 7% depending on how early it is paid off.  It pays to keep ahead of the seasons, and your customers!