When most people think of startups or small businesses in America, they envision a rosy scene in which a homemaker constructs craft items to sell when the kids are in bed, or a technological whiz-kid who drops out of school to realize his dream of starting a social network. But the American dream isn’t limited by these traditions, and indeed, entrepreneurs come in all shapes and sizes. Here at The Commercial Finance Group in Burbank, we’re on a mission to preserve the success of all of them, regardless of what industry they represent or where they are in the process of growth. Through factoring and other custom financing solutions, we’ve helped businesses of all shapes and sizes, B2B and B2C, create the working capital they need to overcome challenges and ensure sustained growth for the future.
Once in awhile, we like to take an in-depth look at a company that we’ve helped in the past, as an illustration of our effectiveness for companies who may be on the fence about pursuing factoring services. After all, we can tell you all the ways that our custom lending solutions can help your company, but it’s far more valuable to see how they’ve already worked for a company that’s been in the same exact situation.
In today’s post, we’ll take a look at a domestic plastics manufacturer with international aspiration!
The Story Of A US Plastics Manufacturer
“A Norwegian engineer and his Swiss wife arrived in the U.S. with a couple of patents and the dream of owning their own business…”
This introduction is important because it proves that there’s no single entrepreneurial “type.” Those with dreams of owning their own successful manufacturing business come in all shapes and sizes, and it’s ridiculous to think that one-size-fits-all financing solutions will work. Different companies encounter different cash flow problems throughout the various stages of growth, and it’s very important that any and all lending solutions be customized to their specific needs. That’s exactly how we execute our factoring finance services here at The Commercial Finance Group, by listening to your needs and constructing a plan that will work for both parties.
“…the timing wasn’t good and sales were poor…
This is where things start to get sticky. This couple wanted to be successful plastics manufacturers in the U.S., and they had both the skills and the products to accomplish their goal…but life refused to cooperate! Their best product was a unique plastic item used to heat green commercial buildings, but the market just wasn’t ready at the time their product was available for distribution. Luckily, they had the presence of mind to realize that there were other opportunities to be taken advantage of while they waited for the market to catch up.
“…overseas orders tied up their working capital for long periods of time…”
With obvious ties to Europe, the couple began to set their sights on growing an international presence…and it worked! Large orders from overseas began to come in and domestic sales started picking up. The only problem was that international transactions were slow and often complicated. If it took weeks for accounts receivable to be paid by domestic clients, their international clients could take three times that long (or more!). This mean that although sales were doing well, their plastics company was still struggling to make payroll and cover property costs while waiting to accounts receivable to be paid. Luckily, they knew a very smart person in the financial industry.
“…A local banker introduced them to CFG, and things have really turned around since…”
This is a great moment to mention our financial partners and the crucial role they play in helping to connect us with business who really need our factoring services. Our financial partners include banks, CPAs, financial advisors, and supply chain advisors. These professionals encounter businesses who need custom lending solutions on a daily basis. Even though these businesses might not be “bankable” in a traditional sense, our partners know that there are other options. They refer their clients to us for factoring, asset-based lending, and receivables financing as a short-term solution to working capital issues.
The best part of this story is that it has a happy ending! Rather than falling victim to their cash flow problems, as so many young businesses do, the plastics manufacturers were able to use factoring to keep their working capital more consistent. They’re staying ahead of the orders instead of falling behind. Extremely rapid sales growth is expected through this year, and with CFG’s support, they are poised to handle it.
We Believe In The Entrepreneurial Dream! Our Factoring Finance Services Can Help
If you’re experiencing problems with money being tied up in unpaid invoices, The Commercial Finance Group in Burbank can help. Whether you’re here in California or located halfway across the country, we have a branch that is ready and willing to help you through your financial struggles. Our short-term factoring solutions can make the difference between dying and living to fight another day! Contact us or apply online today.
