He Found a Winning Secret!

The following article was written by Dan Lacy and is reprinted/republished with permission from the author. You can learn more about Mr. Lacy and his consulting firm Dynasty Builder by visiting his Website: http://dynastybuilder.com or his Blog: http://danlacy.com.

March 9, 2011

I Found a Winning Secret that Works for Cash Starved Businesses

We all know that one of the greatest fears that business owners face is the sudden shortage of cash at a critical moment: payroll, a big vendor discount or bank payment.  It is a very frustrating, maddening, stressful time because you have the receivables; but you don't have the cash. 

Since this is an issue that many business owners face sooner or later, I thought it would be a good time to reveal a solution I found.   Last year while at lunch at Olive Garden in Greenwood, I met a person that solves "cash shortages problems," his name is Jim Hayes.  Jim's company is Interface Financial Group.  He is local, makes all of his own decisions and funds his own deals.  He is the real deal, genuine, honest, and connected.   

Here is some basic information:

• Transaction size $3k to $100k
• No Mickey Mouse up front fees
• Pay back is typically 30 - 45 days
• Advance rate is up to 90% of an invoice
• Balance sheet condition doesn't make any difference - much different than a bank
• Time in business - not important
• Collateral - accounts receivable
• Cost - is higher APR than traditional banks; but it is very short term funding
• Industry - just about any

Here are some specific examples of how Jim helps business owners make more money and keep in good standing by solving their short term "cash" needs:

Service Installation Contractor.  This company pulls wire for new construction or retrofit IT installations.  The owner is a hard worker, honest and very busy.  His business is 2 months old and he is doing work all across the United States. He has funded his business with his credit cards; but his credit cards are now maxed out and there is a large late fee penalty for not making the payment.  He has no money, but does have $500k in accounts receivable.  He has a backlog of work he can't finance because he has no additional availability on his personal credit cards.  Work is waiting.  He is non bankable because he has only has been in business 2 months.  Jim advanced the money that bridged the gap between when the credit card payments were due and when the contractor received the money - about 3 weeks.  He saved the customer and funded additional work.

Contract Manufacturing Company.  This company has been in business over 20 years, does business with publically recognized businesses in the Midwest, but had a large operating loss last year and was not in good shape with his bank.  The company had a $45,000 vendor payment to pay to get the supplier discount.  Jim supplied the money; the company took the discount and was in very good shape with his primary supplier.  This company uses Jim weekly to fund cash flow shortages until he can get profitable again and regain a good line of credit with a lender.

Transportation Company.  This company is a contract shipper that owns their own vehicles and does work for large customers.  The bank was covering overdrafts and raking in nice fees from NSF charges.  Jim came in and funded the cash flow short-fall. The benefit for the customer: 1) relationship with bank improved, 2) able to take discount on fuel costs, 3) able to fund more business, 4) no more NSF charges.    

Jim has been helping central Indiana business for year 5 years.  Jim Hayes, The Interface Financial Group, 1101 West Superior Street, Kokomo, Indiana 46901. Phone 765-868-7030. 

To Your Business Success,

Dan Lacy, Founder, Dynasty Builder