collecting receivables turnaround?

[Tony Shelton]

Sounds great DJ

I just don't see how this makes any sense unless one is so broke theu can't buy fuel or make payroll.

Here is a shot from the site;

Their example assumes that over half your sales are being held back because you don't have enough money to pay for operating expenses.

I just don't see how that is of any benefit in a service business. Maybe in a manufacturing arena where you need money for hard goods to fulfil orders, but not in a service arena.

And it looks like $100k costs $6500.

If you are grossing $250k per year that's over $20k per year. A guy could buy a decent truck and rig every year for that. Or, $20k could pay a base salary for a salesman, or full time radio ads.

Maybe its a residential thing. We have customers who pay 60 days plus regularly like clockwork. After the first 60 days you don't notice it anymore, you just know it will be there next time at the same interval.

I am still curious as to what happens when the customer goes bankrupt? Do you have to pay back the 85%?

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[DJ Carroll]

I just don't see how this makes any sense unless one is so broke theu can't buy fuel or make payroll.

Here is a shot from the site;

Their example assumes that over half your sales are being held back because you don't have enough money to pay for operating expenses.

I just don't see how that is of any benefit in a service business. Maybe in a manufacturing arena where you need money for hard goods to fulfil orders, but not in a service arena.

And it looks like $100k costs $6500.

If you are grossing $250k per year that's over $20k per year. A guy could buy a decent truck and rig every year for that. Or, $20k could pay a base salary for a salesman, or full time radio ads.

Maybe its a residential thing. We have customers who pay 60 days plus regularly like clockwork. After the first 60 days you don't notice it anymore, you just know it will be there next time at the same interval.

I am still curious as to what happens when the customer goes bankrupt? Do you have to pay back the 85%?

Sent from my DROID RAZR HD using Tapatalk 2

I'm not a salesman for Sky Tony.... All I know is we have ZERO cash flow problems now - Bridgett handles all of the paper work side.

Call them and ask them if you are interested. They are very nice people.

 

[DJ Carroll]

Sounds great DJ

It's perfect for cash flow issues .... We are growing so fast that I need the capitol now to keep growing. That's normally what hems up a business. Look at it this way .... Banks loan you money based on past business so how do you get money for future business or present business other than venture capitol ... that's what sky does for us!

 

[Scott Stone]

I was able to secure financing and grow my business very quickly because I had good credit, and excellent contacts. I have always operated on the basis that all bills are paid at the end of the month. I use a credit card, but it is paid off every month, otherwise, I would be carrying wads of cash, or checks with me.

 

[Tony Shelton]

I'm not a salesman for Sky Tony.... All I know is we have ZERO cash flow problems now - Bridgett handles all of the paper work side.

Call them and ask them if you are interested. They are very nice people.

Thanks DJ. I already went through the credit collapse that happened out here a couple of years ago. I have tried to pass on what I learned from it to my son.

He has enough equipment and backup to run 4 guys 40 hrs a week without worries. He owns it all. No loans, no debt. When the big jobs come he has at least $10k in the bank to cover them simply from saving.

I have had some people tell me the key to a successful business is financing. The one thing they all had in common was they were broke.

Scott is a different story. He took on millions and needed over 20 rigs in less than two months. He did what he had to do but still set it up to pay off in 1-3 years.

I got some very wise advice from two of the wealthiest men I know. One pulled Allegiant airlines out of bankruptcy and the other owns the plant where they make fasteners like nuts and bolts for NASA and the military. Both of them said the key to solvency and profitability was to eliminate the middle man and work directly with your vendors. Also pay vendors first, your employees next and live in a hut if there is nothing left over till you get solvent.

Working with your vendors is the most valuable advice I ever heard. 90 days to 160 to pay keeps you on your toes and makes for a tight belt that carries with you even when you are flush with cash. It only works if the integrity to keep your promises remains intact. But once you learn that kind of responsibility it is unlikely you will ever need credit again from a middle man.

I still don't know what happens if the factoring company pays you $8500 on a $10k job and the customer goes bankrupt and never pays a cent. What happens?

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[DJ Carroll]

Thanks DJ. I already went through the credit collapse that happened out here a couple of years ago. I have tried to pass on what I learned from it to my son.

He has enough equipment and backup to run 4 guys 40 hrs a week without worries. He owns it all. No loans, no debt. When the big jobs come he has at least $10k in the bank to cover them simply from saving.

I have had some people tell me the key to a successful business is financing. The one thing they all had in common was they were broke.

Scott is a different story. He took on millions and needed over 20 rigs in less than two months. He did what he had to do but still set it up to pay off in 1-3 years.

I got some very wise advice from two of the wealthiest men I know. One pulled Allegiant airlines out of bankruptcy and the other owns the plant where they make fasteners like nuts and bolts for NASA and the military. Both of them said the key to solvency and profitability was to eliminate the middle man and work directly with your vendors. Also pay vendors first, your employees next and live in a hut if there is nothing left over till you get solvent.

Working with your vendors is the most valuable advice I ever heard. 90 days to 160 to pay keeps you on your toes and makes for a tight belt that carries with you even when you are flush with cash. It only works if the integrity to keep your promises remains intact. But once you learn that kind of responsibility it is unlikely you will ever need credit again from a middle man.

I still don't know what happens if the factoring company pays you $8500 on a $10k job and the customer goes bankrupt and never pays a cent. What happens?

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It's their responsibility to collect it not me .... And good for your son sounds like he is doing well!

 

[Tony Shelton]

It's their responsibility to collect it not me .... And good for your son sounds like he is doing well!

Sounds like you are doing well too. Just hate to see anybody get caught in a trap.

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