Background:
A growing industrial machinery and service company, founded in 2023 and headquartered in Colorado, provides repair services and sells equipment across Colorado, New Mexico, and Wyoming. With field technicians deployed across multiple states, the company has significant upfront labor and parts expenses but must wait for customer payments, stressing its cash flow.
Financing Solution: Factoring
Initial Amount: $225,000
Location: Colorado
Industry: Industrial Equipment Service & Sales
Problem:
As the company expanded, its cash flow became increasingly strained. Jobs required purchasing parts and covering technician labor long before invoices were paid, which often took 45 days or more. This delay tied up substantial capital, limiting the company’s ability to take on new opportunities and continue its growth trajectory.
When the company approached its banker for a working capital loan, the bank was unable to provide financing due to the business’s short operating history.
Solution:
The company’s banker, a territory manager at a national bank, referred the opportunity to Commercial Funding Inc. Although the banker couldn’t offer financing directly, he wanted to provide his client with a viable solution and protect the valued relationship. Having previously discussed CFI’s AR financing options, he confidently introduced his customer to us.
CFI acted quickly, reviewing the company’s needs and approving a $225,000 factoring line with a one-week turnaround. With factoring in place, the company was able to convert its invoices into immediate working capital, allowing it to maintain healthy cash flow, accept new jobs without delay, and continue scaling operations.
Results:
The client initially had reservations about factoring based on past misconceptions. However, CFI’s transparency, customer service, and support changed that perception. Commercial Funding’s financing solution strengthened the company’s liquidity, enabled continued growth, and reinforced the trust between the banker and their client. The experience was so positive that the client later referred another business to CFI.
