Information Technology (IT) Hardware Contractor
One of Summar’s most rapidly growing clients came to us as a one-man enterprise.
Having worked in an electrical equipment installation company for some time, our customer felt that he could provide a better quality service than his employer could and therefore decided to set up shop on his own.
At his start as a wiring contractor, the quality of our customer’s work spoke for itself and his workload started increasing. The company was getting contracts which required a team rather than a one-man outfit. The growing business required a stronger workforce in order to continue its rapid expansion. However, clients which IT Enterprises contracted for settled their accounts payable at the end of the month and IT Enterprises’ workforce was paid on a weekly basis. A tight cash flow situation prevented the hiring of new employees and caused backlogs, thus compromising the quality of service which had made IT Solutions thrive in the first place.
Due to the need for cash on an immediate basis, banks were unable or uninterested in working with IT Solutions.
Summar, which specializes in factoring for small and mi-sized businesses, was able to tailor a solution which ensured that funding for payroll would be received in a timely basis.
IT solutions started selling its receivables to Summar, which releases funds within two days of invoice receipt.
Furthermore, Summar took on the responsibility of collecting IT Solution’s receivables; thus relieving some of the pressure from the company’s overburdened accounting department.