Factor Services for Payroll Financing
Victor is a second-generation machine shop owner headquartered in Laredo, Texas, who over the years has successfully diversified his company’s offerings to serve the oilfield, Mexican maquiladora’s specializing in auto parts, and the Texas Department of Transportation during various roadway projects.
Even though Victor has historically been able to obtain traditional bank financing to buy machines, he has found over the past two years that AR Factoring with Caprock Funding offers the predictability to his cash flow that is so critical at the start of new projects, especially when it comes to making monthly payments on new CNC machines. Factor Services provided by Caprock Funding also enable him to have the ability to procure materials, and they provide Payroll Financing for Victor, which helps his operations manager, Donna sleep better on Thursday nights before the next day’s payroll run.
Prior to entering into a Factor Service agreement with Caprock Funding, Victor had never heard of AR Factoring. It wasn’t until he and his family traveled to El Paso one Thanksgiving to visit his brother-in-law, David, who has a company that performs maintenance, repair and rebuilding of equipment for the Department of the Army at Ft. Bliss under contracts that generally have a duration of one to two years.
Understanding how difficult it can be to receive adequate financing from a traditional bank, Victor was interested in knowing how David met his payroll and related tax obligations every week. David first reminded Victor of the struggle Payroll Financing had become and how he had been turned down by numerous banks for lack of operating history and collateral. He then explained that he had actually been introduced to AR Factoring through his neighbor who is in the equipment finance business and who had been instrumental in helping Victor purchase equipment used in his work at the Fort. Once he entered into a Factor Services agreement with a local factor that specialized in working with contractors at Ft. Bliss, his cash flow constraint changed overnight. His Payroll Financing worries were over. Now Victor could take on as much maintenance and repair work as the Department of the Army offered.
As Victor and his brother-in-law talked further about AR Factoring and how simple the process is, he decided that he would visit with his account officer at the bank in Laredo as soon as he returned to town in the hopes of getting a solid referral to a provider of Factor Services that he could work with, who would help him grow the shop, and who would alleviate his Payroll Financing concerns.
Almost immediately into his AR Factoring relationship with Caprock Funding, Victor’s life became easier than it had in years. Accounts Receivable Factoring removed his daily concern over cash flow and allowed him to focus more on his strength as a business operator. Victor’s easy demeanor was not only noticed by his employees, but also by his friends and fellow business owners. As a result, he has had the opportunity to educate many of them about the benefits of AR Factoring, which has in turn made their easier as well.