Technology Consulting Case Study - always be remarkable.
Technology Consulting Firm Increases Credit Limits to Accelerate Growth and Foster Future Growth
A seasoned ten-year-old, minority owned, technology and staffing company began operations primarily working with Fortune 100 and government entities by providing robust solutions to meet their customers’ needs and minority spend goals. The company was growing very rapidly and had established a line of credit with a bank a few years earlier. After acquisition of many new contracts, the company had additional needs for capital, however, the bank would not increase their lines until they posted their next tax returns, seven months away. The company was faced with the proposition of turning down the new business, as they were not able to generate enough cash flow given the limit of their credit facilities from the bank, or look for an alternative lender. Fortunately, they discovered our funding solution.
We provided an invoice financing credit facility to immediately give them the credit lines necessary to seize the new contracts and continue funding on previous contracts. We were able to pay off the bank lines and take over with a new credit facility, nearly double that of the bank. Additionally, a number of suppliers to the company were weary of credit risk with the company growing so fast. To further facilitate this growth, we created a vendor payment guarantee program with several suppliers, which allowed them to purchase needed equipment on credit with favorable terms. The initial invoice factoring credit facility we provided is designed to grow as their client grows.
With the new credit facility and the vendor payment guarantee in place, the technology and staffing company has experienced significant growth for the past two years. They can now continue to bid on larger contracts and purchase from suppliers with favorable terms with no fear of meeting credit limits.
The company is now in a position to continue to accelerate their growth without concern for financing the future.
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