You’ve probably heard that small businesses are the U.S.’s biggest economic engine. More than half of Americans either own or work for a small business, and they create about two out of every three new jobs in the U.S. each year. We’re proud to assist small businesses and startups access the cash flow they need to succeed and grow.
In celebration of National Small Business Week, we’d like to share just one of our success stories. The Company was a real pleasure to work with and we are glad to see them continue to grow and succeed.
The Sweet Aroma of Success
The Situation:
A bank, concerned about their Customer’s deteriorating financial condition, reduced the Company’s line of credit. While the bank needed to reduce their credit exposure to the Company, the bank had adequate collateral and recommended the Company speak with Commonwealth Capital, LLC about invoice factoring.
The Factoring Solution:
After meeting with the Company to tour their operation, getting to know them and their business, Commonwealth provided $350,000 of financing by factoring some of the Company’s accounts. Commonwealth worked hand in hand with their bank to ensure the security interest of all the parties involved. “Commonwealth offered the solution we needed – short-term financing and immediate cash flow – and made it work,” the client said.
The End Result:
The factoring facility, combined with the bank’s line of credit, enabled the Company to continue getting payables current. Within 18 months they were fully bankable again, so the Company transitioned back to the referring bank for all their financing needs without any additional fees or early termination penalties.
Why Did You Choose to Factor Your Invoices with Commonwealth Capital?
“They were very easy to work with and made it easy to set things up. Reporting was always available, funding was there when they said it would be, and it was a smooth transition, both getting started and when we finished working with them,” the client explained. “It was the perfect short term fix.”
This post is in a series we are writing for National Small Business Week. For all of our posts on National Small Business Week, click here.