When BrightRay Consulting landed a Fortune 100 enterprise client, they immediately needed capital to scale. Like nearly 1/3 of small U.S. businesses— BrightRay was unable to obtain traditional financing and turned to alternative lending solutions. Because you may find yourself in a similar scenario, we want to share how BrightRay successfully overcame these challenges and consistently grew by six figures month after month using invoice financing with LSQ.

Challenge

Soon after founding BrightRay, a software consulting and staffing firm, Scott Turman landed a Fortune 100 company as a new client. He was thrilled — until he looked at the numbers and quickly realized he didn’t have the cash flow to manage the project.

In the past, BrightRay was always able to get paid quickly, but this new client had placed extremely large orders that would remain unpaid for over 75 days. “That’s when I realized I was facing a cash flow monster,” said Truman, “our inability to get paid quickly became our number one problem.”

As a result, Turman spent a lot of time “chasing money”  — and began waking up at 4 a.m., panicked about how he’d make payroll. BrightRay found itself where many small and medium-sized businesses end up — the point at which market demand exceeded company resources.

BrightRay was evolving, and while Turman saw this new client as an opportunity to enter a new stage of growth, it was becoming clear that the business lacked adequate working capital to finance it. So Truman began his search for financing, but when he tried to get a loan from his bank, he was denied. And when he approached other lenders, they quoted “loan shark” interest rates of 20%.

Solution

By the time BrightRay CEO, Scott Turman discovered LSQ, he was frustrated of dealing with shady and dismissive lenders.  After a brief call and submitting his application documents, Turman soon recognized that LSQ wasn’t like other lenders. They put an “actual human” on the phone who wanted to champion his business through scalable funding and back office services.

He signed on with LSQ and secured a sizable credit facility to accommodate his Fortune 100 client and meet the needs of BrightRay’s growing business. Now that he could adequately service new and existing clientele, he saw business explode week after week as his invoices grew exponentially.

Turman appreciated that LSQ could "ebb and flow" to accommodate their rapid growth. "The projects kept getting bigger and bigger, and I grew with it." Truman also welcomed the professionalism of LSQ's AR management team, who saved him time and money by streamlining collections and alerting him to billing errors, potential credit risks, and client underpayments.

He was grateful for the dedicated customer service team and instantaneous responses to inquiries. Turman described it as "more like a partnership, as opposed to a service."

"Without LSQ, there's no way any of this would have been possible. I mean, no way."

By design, that partnership progressively improved BrightRay's financials, leading Turman and his company to graduate to traditional bank financing and on to the next chapter in BrightRay’s story. To learn more about BrightRay, visit brightray.com.

Can invoice financing help your business smooth out uneven cash flow? Learn more today.