Keith Chapman owns one of Los Angeles' largest and most successful commercial bakeries. After a series of unfortunate events, the relationship with their existing factor simply deteriorated. "We have more than 300 customers that we deliver to on weekly basis and generate almost 2,500 invoices each month. It's a lot of work for anyone, and when we lost a key employee and our accounting software failed, things turned from bad to worse. Our existing funder did what they could to support us but it was simply too much work and it strained our relationship. After nearly 4 years, they asked us to find a new funder."
The bakery had significant challenges with the make-up of their account. The large number of customers and relatively small dollar value of invoices would be a challenge for even the largest factors. We felt the largest hurdle lay with the delinquent receivables and focused a significant amount of resources to identifying and collecting the past due balances. Within 90 days, we made a tremendous difference with the outstanding receivables and the client's cash flow. "We're back to doing what we do best, baking some of the finest breads and pastries in Los Angeles. We leave the tough stuff to Gateway."
What do you do if you are already using a commercial factoring company to help you maintain cash flow and that company can no longer keep up with the work load? A commercial bakery is a business that requires constant cash flow to purchase fresh ingredients to meet customer needs. A commercial bakery also tends to have a lot of clients that generate smaller invoices. As that bakery grows, so do the cash flow problems.
In the course of doing business with a commercial finance company, it can become apparent after a while that the organization has limitations. For example, some California factoring companies are able to handle large transactions on a regular basis, but they are not able to handle a multitude of small transactions that add up to a significant amount of revenue each and every day.
The important thing to remember is that the worst time to discover the limitations of your California factoring company is when that relationship starts to fail. We are constantly monitoring the business we do with our customers and we work hard to update our commercial factoring arrangements so that they benefit us and our clients. That is how we are able to help out clients that do a great deal of revenue, but generate a significant amount of invoices.
When we set up an account with a new client, we will create an interface that the client can use to process invoices quickly and efficiently. Our process runs over website and we customize it to fit your needs. Your accounting staff will have constant access to a system that allows them to input invoices and then wait for us to put cash in your account a few hours later. It is a system we have spent years developing and it has helped to make us one of the most efficient commercial factoring companies in the country.
The moment that your commercial company starts to see a rise in invoiced sales is not the time that you want to find out that your California factoring company cannot keep pace. When you sign up with our commercial factoring services, our professionals analyze your business and develop a system that can withstand the quantity of business that you do both in terms of dollar volume and the number of invoices.
A company like ours does not become a top financial partner to small businesses all over the country by failing to think ahead. We have the programs you need to improve your cash flow and keep generating the invoiced sales that will allow your business to grow.