Success Stories - Factor Direct Capital in Action
Seizing Opportunities: Retail Importer
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Factor Direct Capital’s services have been an ideal fit for importers and distributors of retail products. Case in point - Cutting Edge Designs - a Los Angeles-based importer of women’s apparel. The owners of Cutting Edge had contacts with major retail buyers and access to amazing new product from suppliers overseas. However, they were a startup with limited working capital and had to turn down several large orders because of the long payment cycle. |
Cutting Edge turned to Factor Direct Capital, and we helped reduce their payment cycle from 45 to 15 days. This freed up resources and enabled them to accept those larger, more profitable transactions.
Maintaining Relationships: Sub-Contractor
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Johnston Plumbing & Heating does HVAC work for industrial, office, and multifamily projects in Orange County and the Inland Empire. Although they had been in business for over 10 years and had strong credit, their bank credit line was reduced just after they had begun procuring materials for a new project in Mid-2009. The owners didn’t want to harm their relationship with a long-time supplier and needed to come up with $25,000 fast. They called FDC. |
During our initial call with Johnston, we discovered that they were owed $36,000 for a recently completed project. But the general contractor wasn’t expected to pay for at least another 45 days. We were able to purchase that invoice and provide Johnston with the funds needed to maintain its valuable relationships.
Expanding Operations: Asset Recovery Agent
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The cash flow provide by Factor Direct Capital can help businesses to expand their operations and take on new clients. One such company is On-Time
Towing, an asset recovery agency in San Diego. Owner Marcus Carroll beat
out his competition and signed a large automotive finance company as a new
client by offering net 30-day payment terms. |
He then needed short-term financing to bridge a working capital shortfall. “I turned to Factor Direct Capital because I needed money right away for my expansion,” says Carroll. “It was a good solution when I took on my new client because of the added expenses. I would use them again.” |
