Working Capital Factoring Services - Our Customers
Texas-based Technology and Consulting Company
Bill and Walter operate a start-up technology company focused on software implementation and they have recently been awarded a contract by a large Oklahoma-based energy company. While they are excited to have secured the opportunity, the payment terms of net 45 days offered by the new customer present a challenge as to how they will meet weekly payroll for their team.
Unable to obtain traditional financing from a bank, Bill and Walter decide that factoring their weekly invoices with Caprock will be the best way for them to meet their cash-flow needs. Through their relationship with Caprock, Bill and Walter factor only those invoices that they need to factor and they soon find that they only need to factor every other week.
Six months into the project, Bill and Walter have successfully used Caprock’s services to help meet payroll and to procure additional equipment for the project. Factoring has also enabled them to continue their marketing efforts and secure additional projects with new customers. Without the working-capital funding provided by Caprock, their growth would not have occurred.
Oilfield Fabrication Company
With offices in both Colorado and Texas, Mark provides fabrication and welding services to the oilfield. New opportunities in the Eagle Ford and Permian Basin shale plays have stretched his company to the point where cash flow is tight. To make things worse, he has reached his credit limit with his bank.
At the suggestion of his banker, Mark is able to secure the additional financing that he needs through a factoring line with Caprock Funding. With this line, Mark is able to purchase a new truck and staff up as needed.
As an added bonus, Mark quickly discovers that he and his office manager deal directly with Caprock’s owners, who share his sense of urgency and who are available at all times to answer his questions. A clear win-win for Mark and his company.
Information Technology Solutions Company
Ross and his wife Shirley own an Information Technology Solutions company serving the Healthcare and State and Local Government Marketplace throughout the U.S. Since they launched their company 2 years ago, a consistent focus on service has lead to opportunities in enterprise resource development and security compliance that surpass their expectations. As a result, they find themselves with an increased need for working capital.
In less than a week after first speaking with Caprock Funding, Ross and Shirley are approved and now utilizing a six-figure working capital line that has eliminated their cash flow constraint. They are once again able to take on new business while continuing to manage existing relationships. The funding of their future is no longer a concern.
Directional Drilling Company Serving the Telecommunications Industry
Prior to moving forward with his decision to factor invoices with Caprock Funding, John had concerns that he would be required to factor all of his invoices and he wondered how quickly his reserves would be returned on factored invoices that had paid. With Caprock, John quickly learned that he could factor only those invoices that he wished to factor. When non-factored invoice payments were received by Caprock, they were returned to him in full each week along with reserves earned from his factored invoices that had also paid.
John has factored his company's invoices with Caprock for over a year now and he still wonders how it took him so long to discover factoring. Along with the ability to grow his company, factoring has provided John with predictability in his cash flow. It has also helped him to sleep better at night!
High Speed Document Scanning and Conversion Company
Based in the Midwest, Janet provides data scanning services for state and local governments and industrial, engineering and utility companies. For the past two years she has been able to fund operations and take on small jobs through the help of a small bank loan and with customers adhering to her net 30-day terms.
In an effort to keep expensive equipment and personnel on location for longer periods, Janet made the decision to focus less on smaller jobs and begin to pursue those that would take 6 to 12 months to complete. Early in her shift in strategy, Janet was awarded an opportunity to digitally convert teacher retirement records in a nearby state. While excited to begin the new project, Janet wondered how she would procure the additional equipment required and how she would be able to live with the state’s terms of net 45 days.
That’s when Caprock Funding stepped in. Not only was Caprock able to help Janet obtain equipment financing from a trusted partner, but also Caprock was able provide a low-cost factoring line that eliminated Janet’s concerns about weekly payroll and other liabilities. Through her relationship with Caprock, Janet is now able to pursue new and longer contracts as well as meet revenue projections she once thought impossible.
Pipe Inspection and Cleaning
Brian called us with two problems he needed to solve. First, he had a backlog of sales orders he needed to fulfill but he did not have the cash flow to pay his workers since his customers paid him in sixty days. The second problem was he had fallen behind on his 941 payroll taxes with the IRS.
We were able to issue a $350,000 factoring line of credit after we worked out a monthly payment plan with the IRS. The IRS subordinated their security interest to Caprock Funding and we were able to fund Brian’s new accounts receivable and ensure the IRS was paid off in full over a period of time.
Brian’s company has been successful in working for large reputable oil companies by supplying work over tubulars, along with pipe inspection and cleaning. Brian was able to resolve all IRS debt and take on all new sales opportunities with the new factoring line. Within eighteen months Brian’s company booked enough profits to self fund and become cash flow positive.
Roberta wanted to buy more inventory so she could offer turnkey requests from her customers. The banks would not lend her enough money because she was not showing positive equity on her balance sheet. We felt that Roberta could add more sales and profitability by using our factoring line of credit. After paying factoring fees she was able to become consistently profitable and sales are up 100% for the past two years. Further, Roberta is now showing positive equity in her company and continues to enjoy Caprock Funding’s factoring and ease of use.
Roberta’s company is a distributor of stainless steel coil, sheet, strip and plate. They ship from processing locations in various cities across the United States. They carry stainless steel in both prime and off-prime quality. Roberta’s products can be offered custom cut-to-length, polished, PVC'd, blanked or sheared and serves as an alternative source of supply for stainless steel stock buyout and inventory requirements.
Located in Beaumont, Texas, and with offices in Houston, Dallas and Austin, Stacy wanted to add two new clients that would require additional payroll of at least 50 new workers. Though she was profitable and had positive equity, the bank's offers would not provide enough money. We provided her staffing company a $500,000 factoring credit facility and a 90% advance against her gross invoices. Since Stacy’s gross profit margin was more than 10% this meant that she could take on both new clients without spending one dime of her own equity and still achieve growth and profitability by using Caprock Funding.
Stacy provides temporary and permanent placement workers for light industrial, accounting, financial and office needs. She has grown her company by almost 50% in less than one year and continues to factor.
A Dallas and Oklahoma City based government contractor that provides staffing, software development and IT services won a large contract with the government. They needed a $1,000,000 factoring facility to ensure they would be able to pay their workers on a weekly basis. This new contract only allowed for them to bill monthly which would have caused an insurmountable cash flow problem without either an equity infusion or Caprock Funding providing a factoring credit facility. They now have a 90% advance against gross invoices and fund as often as needed. Further, they receive at least weekly and sometimes daily reserve releases.
After all factoring fees the government contractor has posted consistent and strong profits to go along with the significant top line revenue growth.
HNSI began as a commercial, local and state government contractor focused primarily on IT and software development services. After entering the 8(a) business development program, HNSI expanded our services portfolio to include business process outsourcing and professional services.