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BusinessManager Proves the Ideal Working Capital Solution for Energy Sector Client

An oilfield equipment services company that serves customers in Oklahoma and surrounding areas has seen and weathered the ebbs and flows of the energy sector economy. Having adequate access to working capital is critical to sustaining this company’s success. Since September 2018, the company has used BusinessManager as an affordable source of working capital that is helping it deal with longer payment cycles for its receivables.

Working capital is essential for oil industry businesses

The time it takes customers to pay invoices can create cash flow challenges for this firm and others like it in the industry. “If a customer pays us in sixty days, we consider that an extremely good customer,” said the chief financial officer at the firm. “For the most part it’s 120 days before invoices are paid.” Some customers have also filed for bankruptcy, which then leaves the company holding receivables that aren’t collectible. Customers who go out of business and the lengthy collection cycle makes having adequate working capital very important to sustaining successful operations.

Prior to using BusinessManager, the CFO had opted for factoring as a means of getting working capital, but it was not without its problems. Factoring companies will sometimes directly contact clients who have outstanding invoices, essentially making collections calls to clients without the knowledge of the business. “That was a huge issue for us,” said the CFO. “We definitely hated it. We actually had one customer who told us if we factored, they would stop doing business with us.” For this reason, factoring was less than ideal as a source of working capital.

The CFO learned about BusinessManager as an alternative for working capital from Charlie Loomis, CEO of Financial Consultants, Inc. Loomis began the relationship by simply talking to the CFO to understand the needs of the firm. “There for a little bit, we were communicating almost daily,” said the CFO. “He was trying to understand our needs and it (BusinessManager) was something that he felt would help us, would work for us short and long-term. Instead of just presenting us an idea, I felt like he really got to know us before bringing anything to the table.”

BusinessManager is an innovative Accounts Receivable financing program. It’s an ideal source of working capital for businesses like this one. BusinessManager provides predictable cash flow by providing up to a 90% advance on current and future A/R balances. The use of BusinessManager by a business remains transparent to the customers of that business. It is a low-cost way for a business to have capital to make payroll, remit payables on time, increase inventory, or pursue new business opportunities.

This firm found that BusinessManager was more affordable than factoring. “It’s definitely cheaper. We’re paying quite a bit less than we were with the other party. It’s also easy. It puts money in your hands. I really have no complaints about it. I feel like the way they do it and run it are really good.” The CFO feels that the company is getting value from BusinessManager. He liked how Loomis and the FCI team worked to identify the best option for working capital: “He’s not trying to do what’s best for him and what’s going to make him money, but what’s best for us long term.”

The team at Financial Consulting Inc. can help you make the right choice for your business to obtain working capital. With our extensive network of partners, we can simplify the process finding a trustworthy financial partner. Contact us to learn more!

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VC3 Angus Ranch Secures Loan with Help from FCI

Dustin and Shelly Van Cleave spent almost 14 years planning, researching and developing their vision for an angus seedstock operation that is today a successful operation known as the VC3 Angus Ranch. After selling a family business, the couple embarked upon their dream to start the VC3 Angus Ranch in 2017. They had a rock-solid business plan in hand and felt good about securing a ranch loan.

Ranch Loans Save You Money

“We had worked on a business plan for years and felt like that was top notch,” said Dustin. With such a strong business plan, the couple was certain that findind a ranch loan would come easily. “We really thought it was just going to be simple, but that was just naïve, I guess.”

Working with their local banker, they had planned to pursue financing through the Farm Service Agency (FSA). “We knew we were going to use the FSA in conjunction with the bank on some guaranteed top loans,” Dustin related. “We approached the FSA and we were really shocked to find out they don’t speak the same language as a bank! The requirements for all the boxes that you have to check for each of them are so different. It was really overwhelming.” While the bank was encouraging about the credit-worthiness of their business plan, their banker suggested that if they planned to involve the FSA, they should speak to a loan packager. “I just could not imagine why we needed to do that because the bank could see it was a deal, our credit was great, we had plenty of money, and we had what we considered a very solid and safe business plan,” said Dustin.

Dustin and Shelly were introduced to the team at Financial Services Inc. (FCI), a team of experts with combined industry experience of over 40 years. FCI specializes in helping business owners, farmers, and ranchers access financing to help them succeed. The couple met with Charlie Loomis, who was able to help the Van Cleaves position their operation properly to successfully navigate the FSA loan process.

A barrier to the loan process was getting the FSA to understand the VC3 Angus Ranch operation. “It’s a registered seed stock operation, and the FSA doesn’t really keep good data on that,” observed Dustin. “They want to know what a calf is going to bring when it’s weened, when it runs through the sale barn. And that’s not the business we’re in. But that’s the kind of data they understood. Our operation is a lot different. We carry our bulls out to 18 months and sell them as semen-tested breeding stock, top bulls and same thing with our heifers, we breed them back. But, that’s not data that the FSA really looks at. We were using language with them that didn’t fit their criteria and check their boxes.” Working together, FCI, the Van Cleaves and their bank were able to clear away the misunderstanding about how the VC3 Angus Ranch operates, and package a loan application that the FSA approved. “I just don’t know how we’d ever would have gotten any of this done without Charlie’s help,” Dustin concluded. “In fact, I know that we couldn’t. I assume everybody that’s done what we’ve done has had to have someone exactly like Charlie to help get it done.”

FCI’s business is to help farmers, ranchers, and business owners get access to financing and find ways to increase liquidity and cash flow through smart financing and strategic relationships. To see how the FCI team can help you, contact us using the form, or simply call: (918) 762-2271.

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FSA Loans Helped Oklahoma Farmer Save $30,000 in Interest

Brian Rogers farms near Aline, Oklahoma, where he also provides mechanic services and runs a custom hay business to supplement his farm income. He went through a period of financial difficulty and needed some help to get through it. “With commodity prices the way they are, it’s a little tough on us little guys,” said Rogers. “Everywhere we can save money, it makes a big difference.” At the suggestion of his bank, Rogers met with Charlie Loomis of Financial Consulting, Inc. (FCI). The two met to assess Rogers’ situation, and together they came up with a plan.

FSA Loans Help Farmers Nationwide Save Money

The FCI team has a combined industry experience of over 40 years, and Loomis himself has been helping farmers and agri-business owners since 1999. From this base of experience, Loomis determined that refinancing existing debt could substantially improve Rogers’ position. “Charlie said that we could go through with FSA loans and get my interest rate down,” said Rogers. “We did that, and that move saved me over $30,000 a year just on interest. I would never have gotten the loan without Charlie knowing the ins and outs of the FSA loans. Pretty much everything he’s done for me has been a very, very smart financial move.”

Rogers continues to work with Loomis and the FCI team to get advice about financing his operation. “This year, I wanted to build a shop to be able to maintain my equipment,” added Rogers. “They were able to help me see how to make that work into my budget and make a little extra money. I’m a mechanic, so it just gave me another place to work and better place to maintain my equipment.”

Today, Rogers’ business is in a better place, and he gives a lot of credit to the FCI team. “My experience with everybody there is just fantastic, because I probably wouldn’t be in business without them,” Rogers concluded. “With him getting me the better rates, terms, it’s made the difference, like night and day. Charlie has sure helped me a bunch. We’ve had a very, very good relationship.”

FCI routinely assist farmers, ranchers and business owners get access to financing through programs like the USDA Farm Service Agency loan program, and find ways to increase liquidity and cash flow through smart financing and strategic relationships. To see how the FCI team can help you, contact us using the form, or simply call: (918) 762-2271.