David wanted to start his own company, a temporary staffing company. He was organized and had a plan which he was working through and checking off as he completed the necessary steps. For those of you starting out, always write out your plan. Putting it on paper and going through it keeps you on track. Even the best memory, forgets very important things sometimes.
David was working his plan when he contacted me.
Contacts who did not conflict with his current employer
Experience in all aspects of the staffing business
His contacts were ready to give him bonafide commitments on a continuing program
Customers were creditworthy
Drug Testing and Insurance were in place
One Problem Wouldn’t Go Away
How to pay his workers every week or every two weeks before his customers paid?
He had some savings, but paying his workers for 30, 60 days before he got paid would wipe out his personal savings. Plus he had a family to support and personal bills while he was building the business. Talk about Multi-tasking!
Banks and traditional financial institutions wouldn’t speak to him.
David had heard of factoring when he had been working at another company, but he had never used it. When he contacted me, we first went through his needs, then, I explained how factoring worked. As he saw, it fulfilled his needs, and it was fast. We walked through the entire process, went through examples, and as David reviewed everything, it worked for his situation.
We found a factoring company which fit his current volume and business model, and could support his company’s growth. The factoring company manages his back office, sending out his invoices, making sure they are paid on time, and most important, makes sure David has money in the bank to pay his people and his expenses.
David opened his doors with a couple large contracts. The factoring company advanced money for payroll and manages his invoices, with no headaches.
The result: David concentrates on his business of getting new customers and servicing his current ones for repeat business. His time is spent where his expertise is-Marketing and Customer Relations. He doesn’t have to stop, call his customers for money, or worry about having enough in the bank to cover payroll. His cash flow is steady and continuous. He has control of how fast he wants to grow. If an opportunity arises, he can jump on it. No need to worry about how he’s going to pay for it.
David continues to build relationships, and concentrate on growing his business. He doesn’t have to stop and start working the finance side, which he has outsourced to the factoring company. He uses the factoring company when he needs to or want to. He has a flexible, ongoing relationship with them.
Get your business going. Stop waiting for payments.