Background:
A southeastern-based silo cleaning contractor needed a new invoice factoring provider due to newly imposed account restrictions by their current factor. The contractor learned of our services from our affiliate company, Commercial Credit Group Inc. (CCG).
Financing Solution: Factoring
Initial Amount: $500,000
Location: Southeast
Industry: Industrial Cleaning Service
Problem:
The company, located in the southeastern United States, has been in business for over 30 years and offers industrial cleaning of silos, concrete and asphalt equipment. Growth was hampered by slow customer payments. They had been factoring invoices with another provider, but the provider imposed account restrictions effectively capping their ability to grow the factoring line and their business.
Additionally, the company had taken on some short-term debt to fund operations. With repayment looming for the short-term debt, they needed an influx of cash to manage operating expenses, pay vendors on time, and meet payroll.
Solution:
CFI stepped in at the end of their existing factoring relationship and was able to factor more invoices than the previous factoring company, providing them with enough cash to pay off the short-term debt.
With CFI’s increased factoring line, the company receives prompt funding, and has smooth daily operations. The company now benefits from faster access to cash , ensuring efficient financial management. Their CFI factoring line has nearly doubled in the two years of the relationship.
