It turns out that after undertaking our Business Diagnostic we were able to isolate the specific amount of financing they needed. As well, our Business Diagnostic was able to show our client that they were paying their bills in 31 days and collecting from customers in 88 days (on average). The client could change their cash flow (not their revenue) by over $400,000 over the course of the year by managing their receivables and payables more aggressively.
At Bridge Capital we see it all. We have also developed a full service offering to make sure that we can help clients do more by getting them the financing they need. In this case, we have arranged for some interim factoring (accounts receivable financing) to help get our client to their year end. Once their year end is done we can take them to a bank and get them a proper working capital line. Our client is not bankable today however with two (2) years of financial statements in hand we can make a strong case that the business has turned around.
Another solution we put in place was to arrange for some private equity to purchase some of the equipment that our client produces. The equipment was already set to go out on lease and by bringing some private equity forward we were able to free up some immediate cash for our client and provide a opportunity to an investor that had cash sitting idle.
It's important to know your options - because the list is endless.
