Case Study

Finding the right fit with your factoring company is key

Catalyst Financial Company

Client: Industrial Construction Company and Logistics Company

Factoring Line: $6.5 Million

Challenge: The owners of both an industrial construction company and logistics transportation company were working with another reputable factoring company to fund their invoices. While they offered a great contractual rate, the factoring company was not able to fund a significant number of the invoices. The factoring company did not have a lot of experience with industrial companies and required more documentation than was available for the invoices.

The companies worked with an outsourced CFO company who recommended the owners talk with Catalyst to see if we could offer a better financing solution.

Funded: After reviewing the two companies, our team at Catalyst determined we had the capacity to purchase more invoices than were currently being funded. Because of our extensive industrial experience and our streamlined decision-making process, we were able to offer more creative ways for these two companies to prove the work for these invoices was valid.

In this case, rates were not the client’s deciding factor. The client was already receiving low rates from the other factoring company. However, the low rates could not be fully realized because the availability was lacking. Instead, Catalyst was able to provide more flexibility, availability, and ultimately better service.

Since we started funding invoices, we’ve also provided an equipment loan and other types of loans, enabling even more opportunities as both of these companies continue to grow rapidly.

It’s important to understand that not all factoring companies have expertise in every industry. Finding the right combination of rates, availability, service, and flexibility are key to partnering with the best factoring company for your needs.

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