Services company solves cash flow issues with a $1M factoring line

AR Funding is proud to welcome this support services company as one of its newest clients.

AT A GLANCE

Industry: Business services
Location: AZ
Company size: ~$2.8M annual revenue
Reason for applying: Cash flow issues
Cash available through factoring: $1M

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PROBLEM: Longer payment cycles create a cash gap

Founded 10 years ago, this company delivers services to adults and children with developmental disabilities, including caring homes and supportive services. After losing several key employees, the business was forced to contract and lost a significant portion of its revenue.

More recently, things have turned around for the company, and it has secured an important new client. However, the client has negotiated extended payment terms of up to 45 days, which will make it impossible for the company to meet its payroll obligations.

SOLUTION: $1M factoring credit line

The company had tried using merchant cash advances to smooth out cash flow in the past, but the fees and interest quickly escalated cutting deeply into profit margins. The owner researched alternatives and decided that invoice factoring would be a more affordable option. 

She reached out to AR Funding, and based on the company’s growth potential and the stability of its clientele, we were able to offer her a $1M factoring line. The company can now meet the needs of their new client and help more people lead successful lives and become part of a caring community.

This happy client received financing with help from Darren Wright, Regional VP, Central Region. Find out how much cash your company can access through invoice factoring. Talk to us.