“A bank is a place that will lend you money if you can prove that you don’t need it.” – Bob Hope
Our ability to work with our lenders was crucial to the success of our company. Upon taking over our wholesale distributor, we discovered that the company was near insolvency, and that our major supplier was withholding shipments since payments were running more than 180 days behind. Finding needed funds can be an arduous and frustrating experience. A great deal of our time was spent in a search of new sources of capital. We believe this crisis helped us to generate new and creative approaches to unlock sources of capital within our company. Some of these approaches to generate cash flow can include working with vendors, factoring accounts receivable, asset-based borrowing, as well as traditional lending sources. However, developing these creative ideas, while enmeshed in running your day-to-day business, is a true challenge. Assistance in this area can be crucial.