Digital marketing company supports organic growth with AR Funding
“Factoring with AR Funding allowed us to grow our business revenues by 25% year over year.”
Huddled Masses is a boutique cross-channel programmatic marketing technology company that developed a platform to manage digital advertising and digital marketing for its clients.
A little over a year ago, the company entered a growth cycle and needed to generate enough working capital to support service delivery to a rapidly expanding customer base. But in an industry where clients typically take between 75 and 90 days to pay for the work delivered, Huddled Masses couldn’t generate cash flow fast enough to support growth.
Because the company didn’t have the assets or cash flow required to qualify for a traditional bank loan or line of credit, Mark Walker, Managing Partner at Huddled Masses, looked at invoice factoring as an alternative funding option. Factoring works by advancing 90% or more of the cash value of the invoices the business has issued.
After evaluating several factoring companies, Walker chose Associated Receivables Funding (AR Funding) because they were professional, responsive, and offered competitive fees and fast payment.
“I’ve worked with other factoring companies, but AR Funding was the easiest and the best to work with,” said Walker. “Their team made it easy for our finance department to go through the due diligence process and get set up quickly.”
The relationship enabled Huddled Masses to generate the working capital they needed to support organic growth. And because the contract was flexible, the company was able to factor their invoices until their financials improved, and then end the contract when they were able to qualify for bank financing.
“Factoring with AR Funding allowed us to grow our business revenues by 25% year over year,” Walker said. “It also allowed us to execute our strategic growth plan and graduate to traditional financing. The partnership was truly a win-win for us.”
“We would recommend AR Funding to any business looking for a partner to support their growth. They are the first company we’ll call if we ever need to factor our invoices again in future.”