Some customers hold a significant amount of leverage in determining how and when they pay for services. But when a customer decides to make payment changes with short notice, it can place a significant financial strain on your business. Our current client, GB Resources, had to cope with one of these situations, and it brought them to the edge of catastrophe. We want to share their experience and how LSQ's payroll funding stabilized their cash flow and benefited their business.

Challenge

When GB Resources' largest client made changes to their payment practices, the Denver-based staffing and recruitment agency suddenly faced a cash flow dilemma. Their client had requested a change to monthly billing, which would double the length of time it would take them to get paid from 30 to 60 days. Faced with looming loan and bill payments, CEO Gaynor Blackmon, couldn't afford to wait and approached a startup factoring company to meet his financing needs.

It soon became evident that the startup wasn't fully prepared to meet his needs. They were often slow to return his emails and calls, or sometimes completely unresponsive. After a short time, they began to acknowledge that they didn't have the funding available to advance the invoices that Blackmon had uploaded.

"That was not good. We had bills coming up that we needed to pay and couldn't really afford to miss this payment. Our bills were due within a week and a half. We needed funding quickly."

So Blackmon decided to search for new financing options and came across LSQ online. He asked some competitors what they thought of the company, and many had good things to say. Upon calling LSQ and speaking to a "transparent," straightforward representative, he signed up for LSQ’s payroll funding solution.

Solution

With time running out, the staffing agency needed funding within a week to stay in business. So LSQ worked to expedite the underwriting process and secured Blackmon a 90% advance rate for his invoices within days. This allowed GB Resources to meet its upcoming payroll and bill obligations fully and on time.

In addition, Blackmon’s LSQ account manager also recommended a larger credit facility than they originally requested. Though GB Resources didn’t anticipate it, it ended up needing that cushion just a week later when one of its clients didn’t pay on time.

"That had never happened before. It was only a couple of days late, but I still had the cash I needed while waiting for that pending payment. LSQ saved me from catastrophe."

Since GB Resources started working with LSQ, it has secured over $200,000 in funding. As a result of this and access to same-day funding (usually within 2-3 hours), it has also significantly improved cash flow, achieved better credit, and experienced considerable business growth.

As the single father of a teenager, Blackmon doesn’t have time to waste — so handing over AR and collections functions to LSQ has freed up considerable time and resources for him to focus on his family and his business.

LSQ’s top-notch customer service has also been a huge help, as he usually receives responses to his queries in less than 30 minutes. He says that, without LSQ, GB Resources "probably wouldn't be in business."

"LSQ’s knowledge and intuitiveness about my business and how it works saved me from catastrophe. They under-promised and over-delivered."