We were in a catch 22. We needed money to grow, but no bank would help us until we were doing at least a few million dollars in sales.
Fort Myers, FL (Vocus) July 1, 2009
The owners of service-based company in the oil and gas trade should spend most of his day focusing on activities surrounding oil and gas. Instead, Brenda and Mark Neufeld lost productive time as they contacted customers to collect payment on their unpaid invoices. Without cash flow (http://capitalsolutionsbancorp.com), the owners couldn't invest in the company. They needed money in the bank, which meant getting customers to pay up.
"At B.N.M. Piloting Services, we had tried to get a simple loan from a bank for the longest time. All banks said basically the same thing: 'Nice company... come back next year when you have three years of track record and assets.' Big waste of time," says Brenda Neufeld. "We were in a catch 22. We needed money to grow, but no bank would help us until we were doing at least a few million dollars in sales."
Neufeld found an alternate solution from Capital Solutions Bancorp. This funding option allowed the owner to get the needed cash and hand over the process of chasing customers to its factor, Capital Solutions Bancorp.
Why would a factor want to pick up its client's task of tracking down customers who haven't paid their invoices? Factors like Capital Solution Bancorp specialize in financing and that's all they do. When financing isn't a company's specialty, it takes more energy and work to get customers to pay. They'd rather spend their energy on the things they do best.
"Though we work with businesses to find the right financing solution and provide the financing, I'd always suggest the client to go to a bank first. However, we know from experience that banks turn you down because your business is too new or take too long with the loan process," says Carlos Weil, Capital Solutions Bancorp CEO. "We see ourselves as a stepping stone between start up and growth."
Weil's client also appreciated how Capital Solutions Bancorp worked with his customers. Even though the client no longer had to pursue unpaid invoices, it was important that the factor respected his customers as they were still customers. They might buy again or tell others about the business. To ensure you find the right private lender, request references from the lender and ask questions.
"Knowing that we can tackle any job -- no matter what the size -- without concerns of getting into a cash flow choke is a huge relief for me. We have grown our business exponentially thanks to Capital Solutions Bancorp," says Mark Neufeld. "We probably qualify for a traditional line of credit, but we're not sure we want to bother with it after establishing a relationship with Carlos' company."
In addition to accounts receivables financing, Capital Solutions Bancorp offers flexible line of credit, purchase order financing and company purchasing help. Unlike banks, Weil's company looks at factors beyond the bank's typical required collateral or assets.
For interviews or help, please contact Rob Oskins at 800-499-6179 or roskins (at) capitalsolutionsbancorp (dot) com.
About Capital Solutions Bancorp
Capital Solutions Bancorp (http://capitalsolutionsbancorp.com) is a financial services company with operations in North America, South America, Europe and Asia. The company focuses on providing flexible and affordable working capital to small and mid-size business that are looking to grow. The firm works with the business to determine what financing solution best fits its needs. The company's United States headquarters is in Fort Myers, FL.