InWest Printing, Inc. has been serving the printing industry since its establishment in 1997, experiencing firsthand the unpredictable nature of cash flow. Despite securing contracts to print ER forms for 92 hospitals, they encountered a significant challenge: a severe cash flow shortage. As the production of carbonless ER admission forms was both complex and costly, InWest recognized the need to maximize their printing batches.
To complicate matters further, the hospitals lacked storage space for pallets of forms, resulting in monthly drop shipments and 70-day payment terms for each invoice. In order to secure the deal, InWest agreed to these terms, but faced a financial hurdle. The cost to produce the initial one million ER forms amounted to approximately $150,000—$145,000 more than the available cash. Moreover, they wouldn’t receive payment from their customers until 70 days after delivery. InWest urgently required a cash solution.
Despite being turned down for a bank loan, InWest found a lifeline in Universal Funding, a reputable company specializing in receivables financing and purchase order financing. Universal Funding devised a program tailored to meet InWest’s immediate cash needs, enabling them to kick-start their printing operations. With the assistance of Universal Funding, InWest gained access to the necessary funds for printing, inventory, and form delivery, eliminating the need to wait for hospital payments or take on additional debt.
Over the course of two years, Universal Funding covered InWest’s supplier payments, allowing them to bolster their profits to a level where cash flow was no longer an obstacle. As a result, InWest achieved greater financial independence and reduced reliance on factoring their invoices.
If your printing company is currently in need of a much-needed cash infusion, we encourage you to reach out to Universal Funding today. Speak with one of our dedicated factoring specialists by calling 800.405.6035, and let us provide the financial assistance your business requires.
