This is a great entrepreneur story! A tugboat captain for most of his life worked for other barge or tugboat companies and always dreamed of owning his own company. He realized he had to save up enough money to buy the boat, fix it up and start his company.
The main concern in his mind was how he was going to offer credit terms to the customers he wanted to service. All the major accounts he called on were large, slower paying customers but they were the only ones around to service. After doing research he found 1st Commercial Credit in 2015 and realized he can utilize an accounts receivable factoring company by converting his invoices on credit terms to cash flow.
After 5 years of planning and saving his money to buy the 1st boat, he kept us up to date on the progress and finally became operational this year and funded his first batch of invoices.
The negotiated terms with his customers are based on a daily rate charge at net 30 days, as you can imaging the daily expenses it takes and fuel cost to maintain the demand can be overwhelming with working capital needed. 1st Commercial Credit was able to fill the cash flow gap and without the help of our accounts receivable financing service there was no way our client would have been able to start the business.
Our client is off to a healthy start and now that he has his cash flow solutions solved, he has started to place more staff and more boats to service more accounts. If you're an aspiring entrepreneur and need access to working capital give us a call. We can help make your dreams a reality!