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Hawaii Factoring Report

Factoring Success Story

Hawaii Receivables Management (HRM) is proud to share an example of how we helped a small business become an award winning company.

With an introduction from their bank, we met with a small local distribution company. The company had a paid in capital of less than $500 and their annual sales were in the $1 million range.

There was a huge demand for their product but they were unable to meet this demand. The reasons were typical of most small businesses, 1) not enough capital in the company and 2) the timing mismatch (the number of days between when they must pay for their product to when they get paid for their sales) was 45+ days.

The client's bank was unable to help because the company's repayment ability was not sufficient. Because HRM looks to the company's excellent customer base as our repayment source, we were able to step in and provide the company with an initial funding of $101,000. Over the next couple of years we purchased nearly $1.7 million worth of invoices. The speeding up of their cash flow allowed them to meet the terrific demand for their product and their next year's sales topped the $3 million mark. Their net worth is over $100,000 and they've transitioned back to the bank for a good size line of credit to meet their short term needs.

We are certainly happy with this story, but wait, there's more...

The following year, the company was named SBA's Exporter of the Year for the State of Hawaii.

Now obviously this company didn't get to this stage without a lot of savvy and smarts. Good management is always critical and in small business hard work and long hours is a given.

But, we at HRM like to think that we played a small part in their success.

Looking for similar results? Start a new success story today by calling Mike Young or Rick Humphreys at 254-9008, or fax us at 254-4208.


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