Electrical maintenance company expands into renewables with a $1 million factoring line
AR Funding is proud to welcome this electrical staffing services company as one of its newest clients.
AT A GLANCE
Industry: Technical staffing
Location: NM
Company size: $250,000 annual profit
Reason for applying: Finance a new business area
Cash available through factoring: $1 million
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PROBLEM: Sector expansion creates a cash crunch
Founded by a father and son team less than five years ago, the company provided electrical and construction services to the oil and gas industry. More recently, the company owners have decided to expand into the solar-power industry in order to diversify and expand the business. However, customers in this sector tend to expect payment terms of 45 days or longer, which puts a strain on the company’s cash flow and payroll.
SOLUTION: $1 million factoring credit line
The owners’ credit histories made it difficult for them to qualify for traditional financing options, but because their customers had excellent credit, invoice factoring was a viable alternative. After speaking to several factors, the company chose AR Funding, who were able to extend them a factoring line with projected monthly funding of up to $1 million.
With a factoring solution in place, this company can now confidently pursue lucrative new contracts in the solar-power industry and continue to diversify their service offerings.
This happy client received financing with help from Crawford Reeves, Regional VP, Southeast Region. Find out how much cash your company can access through invoice factoring. Talk to us.
