Gabriel Romero, President of Printing Solutions, turned to Gateway Commercial Finance when his receivables began to trickle in. Printing Solutions is a commercial printing company servicing Fortune 500 companies with operations in Mexico. "As we grew to support the needs of our customers who operate Maquiladora's, we suffered from their slow payment practices. This strained our relationships with our suppliers and we were always robbing Peter to pay Paul. Because we're only a few years old, our banker was unable to provide us with a sufficient credit line to support our growth.
Our banker recommended Gateway Commercial Finance. "Gateway's team actually listened to our situation and created a program tailored specifically to our needs and the payment trends of our customers. With reliable cash flow, we're ready to take on the Fortune 100!"
One of the truly great things about small business factoring is that it is a mutually beneficial relationship between a funding company and a customer that results in positive outcomes each and every time. No matter what your company is up against, as long as you have invoiced sales,then you have everything you need to meet your financial needs.
New companies that experience success early are often put in very bad situations. Their start-up cash has long since evaporated and they are now being asked to take on business from larger clients that could, in the end, generate revenue that brings the company to the next level of success. But not every success is as beneficial as it may seem. Sometimes success comes with fangs attached to it and the smart entrepreneur needs to learn how to avoid those fangs and pull his company out of a crisis.
The problem is often very simple; a new company starts to outpace its cash flow thanks to its unexpected success. The problem is that success comes at the hands of a customer that does not always pay its bills fast. That means that the new business has three choices:
Any business professional will tell you that choice number one is simply not an option. With growth comes challenge and if you are not able to meet that challenge, then you should not be in business. Option two is a good short-term solution, but it creates long-term problems that will not be pleasant. Option three is a nice idea, but banks tend to shy away from new companies that do not have strong credit histories. It sounds like our hero is in trouble. But there is a very real option that solves the companies’ problems using resources it already has.
A professional invoice factoring company will take those new invoices and turn them into cash. The company can start a long-term and ongoing relationship with a receivable factoring company that will keep the company bank account full and make all of the necessary operating funds available.
Does this printing company's story sound familiar to you? This could be the tale of any new company that suddenly finds itself experiencing success that could cause the company to close its doors for good. Don't let success be the undoing of all of your hard work. When you develop a relationship with an invoice factoring company, you do not have to fear new business. As a matter of fact, a small business factoring program will make it easier for you to go out and find new business that you can use to meet all of your financial goals and grow your company into the industry powerhouse you had planned on being.