How Accounts Receivable Factoring Helps Businesses

Hi Phyllis Rector. Yes, you have at least 1 other video of me so far. But, I'd like to tell you an anecdote about a customer that we have, a client of ours that we helped out through accounts receivable factoring. So, typically, we had actually, up until recently target customers, companies with about 250,000 in sales up to about 5 million.

But, let me tell you, this recession has opened up more opportunities for us and last fall, actually last December, we financed a windows installer, distributor and installer, who in 2008, for the first six months, had done 8 million dollars worth of business. He had contracts and orders but sometimes, especially in the field of construction, these do not mobilize. It did not mobilize. His competitors went bankrupt. As a last resort, he put up for sale his show and building. And then actually, somewhat out-of-the-blue, he had a major general contractor come to him wanting him to do provide the windows and install them for a mixed use commercial and residential project.

Well, what is this guy going to say? He says, of course I'll do that. So, time came when you know, the buildings up and they got to install the windows. They'd been on order and his supplier says, yeah, I will ship you the windows, COD. What is the guy going to do? Great thing that he contacted one of my colleagues, who in turn called me; I met with him and we came up with a mutually beneficial agreement so that the windows get shipped and the supplier was paid COD. Our client, the windows installer, finished the installation, billed his general contractor, took that over. We waited for like fifty days, got paid, rebated it back to him, the difference between the discount and our fee, kept him in business.

So just as a simple note, we do have a few minimum requirements and they are pretty basic. Okay. We need our clients to have 2 customers and we need them to be at a $20,000 a month run rate in revenues. Thus, if your business has fallen off, but you are starting to grow out of it, and you need some financing or you even think you're going to need some financing, give me a call. Nothing beats the early bird, they say; this way, you'll be able to take on that big order as soon as it comes. So call me, email me, whatever way, do contact me. We at the Interface Financial Group would love to try to assist you.