An oil and gas service company had a long-time banking relationship with
regional bank. The bank had provided credit for the company, which
they used for
payroll needs due to the slow pay cycle of their customers
and nature of their industry.
The company found its specialized underwater pipe testing and repairs were
increasingly in demand. Wanting to take advantage of this growth opportunity,
they hired more technicians, increasing their weekly payroll.
However, when they applied for what they thought would be a routine
increase to their credit line, the bank rejected it, saying the business did
not meet the criteria for an increase in funding.
The company’s management was near panic. They had only a short time
before having to meet payroll obligations. Their bank officer referred them
to a factoring firm. The company was unfamiliar with “factoring,” and
decided to do some research on their own, to learn more about the industry
and see what kind of rates were available. Working quickly, they discovered
AIM on the Internet and contacted us.
The company conveyed the urgency of the situation. We were able to
process their request within 24 hours and issue a proposal, while our
competition was still gathering information. After three days, they still had
no response from the other factoring firm. It was now Wednesday, and
payroll was going out on Friday.
The company accepted AIM’s proposal, and we were able to verify all of
their invoices in a single day and fund them in time to meet payroll.
With AIM’s funding in place, the company was able to take advantage
of an important growth opportunity and doubled their revenues in a
short period of time. AIM helped the company through this stage of their
growth and continues to be their financial partner.