Several months ago, Factors Southwest received a call from a loan officer with a local bank. He shared with us he had a client who just started a business, selling an environmentally friendly product. The new business owner was at a complete loss as to an answer on where to go to continue funding his business. He had a great product; cost of goods was next to nothing as he found a way to recycle a product that was being tossed in the garbage by businesses on every corner. He had self funded and was able to sustain until the orders really started rolling in. His product was selling all over and with little PR effort on his end, he was receiving all kinds of publicity. He needed to hire help, purchase a piece of equipment to produce faster and a higher volume of his product to keep up with demand. He had invoices from strong companies with 30-60 day terms, but no cash.
Factors Southwest was able to look outside the box, beyond the 2-3 years tax return requirement that banks have and see a great product with great potential and we started funding him. Initially we funded approximately $12,000/month and with cash flow in his control, he has been able to grow his company and is now funding approximately $20,000/month. The loan officer who referred this deal was able to keep the banking relationship with deposits and we fully anticipate this business owner will go to this loan officer when he has his 2 years worth of tax returns for a bank line of credit. Score 1 for the Client!
If you are a small business wondering what loan options you have besides a bank, contact Factors Southwest. www.factors-southwest.com