Most entrepreneurs don’t think about small business lending solutions until they run into cash flow problems. When this occurs, they immediately think of applying with banks and credit unions for traditional commercial loans to help them get through this time of financial leanness. What they don’t realize, however, is that these institutions aren’t in any hurry to lend money to small businesses. The application process is long and involved, and at the end of it all, they could still choose to reject your request for funding because of a small technicality. It’s no wonder so many of these companies panic and sometimes close their doors prematurely.
Here at The Commercial Finance Group in Los Angeles, we’re in the business of keeping SMBs in business. We hate to hear tales of startups and family businesses who were forced to declare bankruptcy and give up their dreams because they ran into cash flow problems that they didn’t know how to solve.
We can tell you how many businesses we’ve helped survive uncertain times, but we’d much rather show you. Let’s take a look at one of our many success stories now. It involves a janitorial services company that was struggling to keep up with its expenses. It’s a great example of how The Commercial Finance Group uses receivables financing to lighten the load of struggling business owners, helping them to create working capital when they didn’t think they had anywhere else to turn.
Review From A Janitorial Services Company
“We had to pay all these expenses while waiting to get paid by our customers…”
Sound familiar? We can’t tell you how many Los Angeles companies reach out to The Commercial Finance Group because they’re in just such a predicament. Like this janitorial services company, many service based enterprises invoice their customers, meaning they do not demand payment in full when the service is rendered. While expected and convenient for B2B commerce, this arrangement puts the company providing the service in an awkward situation that can quickly lead to cash flow issues.
“But we didn’t qualify for a bank loan or line of credit because we were a brand new business.”
This is what we mean when we talk about “building a bridge to bankability” for small to medium sized businesses. It’s shocking for these entrepreneurs to learn that even though they’re already in business, they don’t have the credit history or the collateral to qualify for traditional financing. Left out in the cold, many business owners feel that they have to put up their own personal funds or beg for the kindness of family and friends just to make payroll. But these aren’t the only ways. Alternative financial institutions offering custom lending solutions such as the options we have here at The Commercial Finance Group provide a light at the end of the tunnel.
“Accounts receivable financing from CFG enabled us to get the business off the ground, and it’s still beneficial for us today.”
These are the stories that make us so proud to be in the business of providing account receivables financing for small and medium-sized businesses.Instead of closing their doors because of minor cash flow problems that weren’t even their fault, this janitorial services company had the opportunity to survive and thrive thanks to the partnership they formed with The Commercial Finance Group. Without CFG, this company may have had to wait up to 45 days to receive full payment from their customers. But by working with CFG, they were able to meet payroll, vendor, equipment, and supply expenses easily and without worry.
“We have a very strong relationship with CFG…They bend over backward to help us.”
We love this conclusion to the story. As you can see, we are not just a “one and done” financial institution. Even though this janitorial services company now qualifies for a small bank line of credit they choose to use it in conjunction with our receivables financing services. Many of our clients establish long-term relationships with our company because they realize this level of customer service doesn’t come around that often. When’s the last time you could truthfully say that a bank has bent over backwards to help your company survive a tough time? Together, CFG and the bank is providing this business with the confidence it needs to move boldly into the future.
If you’re facing financial hardships, either because poor management led to cash flow issues or because you’re simply a new business that can’t turn to traditional financial institutions for the funding you desperately need, please realize that you do have options. In fact, many of the custom lending solutions we provide to Los Angeles businesses don’t increase their asset to liability ratio in any way.
Contact us to learn more about receivables financing today!
