Recently a business owner approached us after recognizing a severe financial crisis. The problem was not because his business was failing or because he was losing customers, the issue arose because his bank began making unreasonable demands as his business grew.
The business operates in the oil and gas industry and is rapidly growing and taking on new customers. However, the expenses of expansion were staggering.
Over $150,000 was owed to vendors, the fuel expense was $2,000 per day, and they had to meet a hefty payroll that included a lot of overtime. With the growth the business was experiencing these financial obligations were manageable.
What made the situation unmanageable for this company is that the bank was requesting $72,000 of an outstanding loan of $100,000 or it would take back the company’s building. This would effectively put the oilfield operation out of business leaving the bank with an unpaid balance. The bank was about to forcibly close a growing business and lose repayment because it refused to restructure a loan.
Universal Funding saw the potential for this business, and had a fast solution to free up the money needed to pay off the bank. Through invoice factoring, the owner got the money he needed to satisfy the bank and a financing solution that created a cash flow surplus. He no longer worries about cash shortages that would crop up around payroll or when unexpected repairs were needed on equipment.
There are companies experiencing this same scenario all across the country and factoring companies like Universal Funding are in a position to make sure growing businesses stay in operation. If you have an unexpected expense, a loan repayment due, or just want peace of mind when it comes to cash flow call 1-80-405-6035 today!