WJM7FactoringClientProfileSheetpdf.pdf
·To meet payroll and other immediate cash flow requirements.
·To spend more time on business operations and less time on reporting requirements.
·To obtain customer credit risk protection.
·To buy inventory for increased sales.
·To have an alternative to bank financing or equity financing.
·To supplement or reduce the amount of equity being raised.
·To take advantage of vendor discounts and opportunistic purchases.
·To bring taxes current.
·To acquire equipment necessary to reduce costs.
·To reorganize, whether in or out of bankruptcy.
·To make strategic acquisitions.
Construction Management Firm: $300,000 (Factoring)
An established construction management firm advanced against their Septa receivables as a viable alternative to bank financing. Companies like theirs are getting paid at least 15-days late for public projects. Publically funded projects are currently running at less than 3%; so if they had a 10% retainage then they would be operating through the entire project at a 7% loss. They gained value by having access to the capital in less than 45-days and they then turned that access into savings; whether through property discounts or materials that they could get less expensively. Their project with Septa was going well but the stimulus and government funded jobs kept adding layers and layers of paperwork and all of that paperwork practically exists to slow down payments.
Further, WJM 7’s factor maintains a high level of invisibility. The client had indicated that they generated their own invoices with Septa. From a conference call with the client, they indicated that they had saleable invoices (after tons of red tape) within 45-60 days. The factor could advance 75% of the face amount of that invoice. The client would then have the budget (i.e. where’s that money going?) and the factor would work with them because the client drove the train. The factor set up their account (operating account) so the client does not appear anywhere on the disbursements. For instance, the client got a draft account for whoever did their payroll so the money would get directly into that payroll so it would then be a matter of paying job costs. When that invoice is paid and when it comes in it goes into the trust account and then the 75% accounting reserve was available to then come through and be disbursed to the client.
Exotic Food Products: $200,000 (Factoring)
A young distribution company suddenly found itself presented with an opportunity to purchase the factory where their main product was produced, pickled pork rinds. However, the purchase did not qualify through the SBA and there were other legal and financial problems as well. An introduction to WJM 7 resulted in a further introduction to a capable attorney and a deal was struck. Today sales are increasing substantially and a payment plan has been put in place with the assistance of WJM 7. Watch for pickled pork rinds at your local super market in the near future.
Fulfillment House: $150,000 (Factoring)
Everyone knows the wine industry is booming and that the number of products and distributors is increasing along with it. An expert in the field is encouraged to open a fulfillment house to facilitate storage, distribution and on line sales but it is a concept business with little in the way of tangible assets, history or collateral. Fortunately an internet search put them in touch with http://www.WJM7.com <www.WJM7.com> . Now not only is the cash flow assured as the business grows by leaps and bounds but the services CFG provides enables the owner to concentrate on providing the utmost in customer service. Now one of WJM 7‘s factors is discussing ways to help his distributors with their own cash flow. This just might be the perfect relationship.
Trucking, $100,000 (Factoring)
Everyone knows the challenges facing the trucking industry and they are substantial. Some companies are better prepared to succeed than others and that is the case here. A good trucking business begins to suffer when his customers no longer take advantage of his 2% early pay discount. Combine that with a couple of mechanical problems and the problems begin. Traditional lenders are not comfortable with his situation or his industry and his CPA suggests he speak with WJM 7. Within 2 weeks one of WJM 7’s factors is funding his A/R and he has all his trucks back on the road. His business is running smoothly and he plans to grow his sales. He has built in the fees along with a fuel surcharge and he is off to the races. This is an industry where factoring makes a lot of sense.
Textile Manufacturer: $75,000 (Factoring)
Husband and wife with extensive knowledge in the furniture industry saw a void developing in textiles for upholstered furniture. After exploring the niche, they decided to raise some capital and see if they could make a go of it. After a year of inconsistent sales and struggling to establish a solid customer base, they got the break that they were looking for; a large recognizable customer that they could leverage their relationship off of. After exceeding that customer’s expectation, they began to generate new customers and grow the company. In their attempts to secure financing, their banker introduced William McCloskey owner of WJM 7 Commercial Lending to the owners. In the matter of a week they had access to the capital they needed to grow the sales and take this company to the next level.
One of WJM 7’s affiliate factors provided a $500,000 factoring facility to an HVAC fabrication company in New Jersey.
One of WJM 7’s affiliate factors provided a $750,000 factoring facility to a hotel services company in Texas.
One of WJM 7’s affiliate factors provided a $1,000,000 factoring facility to a baby food company in New York.
Referred by their bank who was unable to offer necessary loan terms
but did not want to lose the relationship or deposits.
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