You Don't Qualify

You don't qualify.

These words were still ringing in the ears of a food industry entrepreneur when recently introduced to me by one of the local economic development offices. The still lingering words came from the mouth of a loan broker without further explanation. The loan broker probably looked at this emerging manufacturer of specialty snack foods and decided the company was too small to justify his time.

I saw it differently.

The company had a product that already had market acceptance. It was being sold in two chains of upscale grocery stores including one private label arrangement. Two other major national grocery chains and a major national camping equipment chain had orders pending. Distributors had already agreed to terms. With the right funding solution, this company could grow into a multi-million dollar revenue company in a matter of months.

A few days later, one of my funding sources approved both purchase order financing and factoring of accounts receivable. It's a perfect solution to enable a small business with hyper-growth potential to get the rocket fuel it needs for take-off.

The business owner is overjoyed and has told his sales force to go full steam ahead in pursuit of new orders and accounts.

By the way, the small business owner is also a minority who may qualify for certain advantageous loan programs down the road. In the spring, we'll revisit his situation and see if other asset based funding solutions may be a good fit once he's established his borrowing credentials and created a well diversified customer base.

Has your lender or loan broker said the words, "you don't qualify"? Read "Matchmaking for Business Loans" and give me a call!

Related Tags: factoring, accounts receivable, p.o. financing, purchase order financing, bank loans, equipment leasing, working capital, cash flow