An expanding manufacturing company has been relishing the fact that it has increased its turnover. Ownership has been extremely proud of their new product which has enjoyed great reception based on the large amount placed of forward orders. The problem now is that the business capital spent to develop and launch the product was very substantial. Now the company is in dire need of cash flow to operate the day-to-day business expenditures while it waits to receive payments from its customers over the next 30 to 60 days.
Meredith Seeks Support
Meredith has had a great relationship over the last several years decided to approach her local community bank for an increase her line of credit. Unfortunately, she is informed by her banker that the small business financing options are not available at this time due to the banks tightening its credit limit and borrowing capacity to fast growing companies.
Immediate Cash Resolution
Meredith local banker, Travis has a adept knowledge of factoring and ongoing relationship with Lily Pad Financial. Based on Travis sound advice Meredith has submitted a bundle of outstanding invoices to be paid off with 24 hours. Lily Pad Financial risk management team rapidly assesses the invoices and the other pertinent industry data and funds the business a total of 90% of total invoice amount. Meredith is now relieved and can now do what she does best which is service are existing customers.
Stay tuned to our frequent industry scenarios focused on how invoice factoring rescues firms constrained by a lack of business capital.