How Invoice Factoring Helped a Cell Tower Contractor Get Off the Ground

A Start-Up Company Had No Money: Invoice Factoring Provided the Cash that was Needed.

The Challenge:

Kent, an experienced cell tower contractor from Florida opened his own company, which erected cell towers and put them in service. Kent used most of his savings to acquire equipment for the company. Next, he needed operating cash. Although he had the knowledge and skills for the work, when Kent went to his bank for a business line of credit with a bank, his application was turned down because his company was a start-up. The new company needed capital in order to be successful. Because Scale Funding has experience providing invoice factoring for cell tower contractors, a solution was simple.

The Solution:

Kent called Scale Funding on the recommendation of a business associate. Scale Funding was able to open an invoice factoring line for Kent and his start-up company three days after the first call and discussion. The factoring line bridged the gap between invoicing and payment by providing cash, which Kent used to purchase supplies, maintain the equipment, and keep the company operating.  The invoice factoring line did not add debt to the company.

The Result:

Today, the tower contractor has booked work for the next 9 months. The invoice factoring line provides immediate cash, and because of the credit and payment history of the customers, it has been increased. Kent has added a second crew and equipment to meet the needs of his customers. Kent is using his weekly funding on his invoices to meet payroll, stay current with his vendors, and keep positive cash flow.

Summary:

Because Kent was just starting his new company, he had no business credit history and therefore was turned down by his bank. With most of his savings being used to purchase equipment, cash was needed for company operations.  The invoice factoring line from Scale Funding provided the cash Kent needed, without adding debt to his company.