Subscribe to Blog ContentYou don’t have to be stuck in how you manage your business. If you find your business needs cash or working capital to pay bills and stay in business, you’re not at the mercy of banks who won’t give loans. This doesn’t mean you can’t do anything about it. You can. Three words: Look beyond banks.
Here are two stories of business-to-business (B2B) businesses in need of cash to take care of all expenses, payroll, rent, and more.
Case Study 1: Business Sees Sales Cut in Half
The tragedy of 9/11 saw this company’s sales shrink by half. This led to a cash flow problem as they struggled to make payments. Its president had every confidence in the company, bank’s didn’t share the enthusiasm. Imagine a company in this situation in today’s economy where banks say “No” more often.
The company took advantage of our Line of Credit collateralized by receivables. They got the cash and we took care of everything else including the risk, administrative tasks and accounting services. The embroidery company has pulled out of its sales funk and achieved much more because it no longer had to wait for cash to come in.
Case Study 2: Escaping a Catch-22 Situation
A gas and oil company struggled to get a loan from a bank – a small one, too – for a long time. The business repeatedly applied and heard, “Nice company, but come back next year.” Next year continued to be next year and the company couldn’t wait anymore.
The serviced-based business also had nothing the bank wanted to secure the loan. No chunk of land, no building, no giant machines, and less than three years of history. Furthermore, the company’s financial health was good. The owner invested her own money for a line of credit, but it wasn’t enough. They needed more to support the company’s fast growth. The huge demand for their services wasn’t enough to convince a bank to say “Yes.” Banks all said they needed to make at least a few million dollars in sales, but the company couldn’t do that without working capital.
Thanks to a referral, the company came to us. We reviewed the situation and company background. We worked with the client to determine the best solution for getting cash flow without choking. As a result, the business grew enough that banks will more likely say, “Yes.” But now that they’re in this position, they might never go back to a bank.
Who says a bank is the only place for financial solutions? These two B2B clients have greater profits because they found a financial organization like ours who don’t deal with the same rules as banks.
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