Updated: Feb 1
Anthony Paladino is proud of his company's recent purchase of a $4.2 million warehouse facility in Westbury, New York. The owner of Atlas Furniture has been running the company since 2007 when Altas began installing business & residential furniture.
Atlas's new 15,000 square foot warehouse/showroom demonstrates just how well things are going. But this was not always the case.
Like any start-up, the early years were difficult and required long hours and creativity. With perseverance, eventually the business began to flow. However, Anthony soon recognized he had a serious problem: Lack of cash flow was preventing growth.
THE ISSUE: PAYMENT LAG
Upon receiving a customer's order, Atlas would outlay considerable cash to complete the job. When the furniture had been delivered and installed, and the client fully satisfied, Atlas would then have to wait to receive payment for as long as six weeks. This consistent payment lag made it impossible to take on other jobs or properly invest in the new company.
Atlas needed capital to bridge the weeks between job completion and customer payment, but borrowing from a bank was not an option.
Fortunately, they discovered an alternative to lending known as Invoice Factoring. This funding method requires no loans, no debt, and no high-interest payments, and it does not depend on Atlas's credit.
FUNDING WAS IMMEDIATE... AGAIN AND AGAIN AND AGAIN
Atlas first used factoring in 2008 for a customer who owed money on a completed job. Rather than waiting over a month for payment, Atlas forwarded the invoice to Factor King, of Hauppauge, NY, who performed a brief review of Atlas's client to determine their creditworthiness. The process was fast, and once the client was approved, Factor King immediately wired funds to Atlas.
From 2008 through 2013, Atlas utilized the factoring option for the majority of invoices, up to five times a week, every week, for 5 years.
When a job was completed, the invoice was, in turn, sold to Factor King in return for immediate business capital. Most of the time, funding was wired on the same day.
Atlas paid as little as 2.5% to get an invoice paid immediately, a worthy expense which allowed the company to invest in trucking, equipment, larger warehouses, additional employees and more.
The continuous flow of capital also allowed Atlas to take on more clients, which was a key to their continued growth. Today, Atlas employs a team of more than 20 individuals and the business is thriving. Atlas rarely needs to turn to factoring, but it is, nonetheless, a comfort knowing the option is always there, if needed.
"I'm eternally grateful that we had Factor King at our side early on," said Mr. Paladino. "Without factoring, I'm pretty confident my business wouldn't have survived."
Factor King may work for you if you are having cash flow issues.
Use this section to encourage readers to get in touch with your sales team if they want to see the same results. Ideally, a link to the sales page, an embedded form for connecting with sales, and/or a phone number would be here.