In the world of sports, a 1 and 26 record is none too impressive. In professional sports, about the only thing this record would ensure you is a chance at the first round pick the following year! However, in a lender-partnership relationship, a 1 and 26 record can take on a completely different meaning. Two experienced project managers had a 1 and 26 record which led their business down the road to success!
The two had worked successfully for the same company for over 15 years. They developed an outstanding reputation in the marketplace for always completing their projects on time and under budget. In addition, they developed a solid dependability for ensuring the sub-contractors on their projects were paid promptly and as agreed.
Several years ago, the company they worked for was acquired by a larger player in the industry. Unfortunately, this new company’s manner of doing business did not align with the methodology and values of the two project managers. While they honored their employee contracts with the company, providing their same level of on-time and on-budget job management, they decided it was time for a fresh start out on their own.
These two managers knew they had what it takes to start their own business. They felt confident they could build relationships with customers, subcontractors and suppliers like they had done before. With a strong work ethic and clear values, they set out to do what they do best.
The two men worked tirelessly to develop a well-reasoned business plan. Finally, they had the courage and preparation necessary to approach their local bank for a line of credit supporting their new business. However, later that same day, the two men left disappointed and astounded. Despite their years of experience and flourishing operating performance, without the cash flow, the bank could not provide financing.
Not to be deterred or defeated, the two project managers got back in the game. Surely someone could see the true value they had to offer to the marketplace. Over the course of the next 3 months, they presented their business plan to 26 banks across several different states. Their record now stood at a staggering 0 and 26! The new business owners were frustrated and nearly at wit’s end. If not even one of these 26 banks approved their loan, it seemed unlikely that anyone would. Maybe this was more than a time out; maybe it was time to throw in the towel.
Despite their frustrations, the two continued to build their business one relationship at a time. After several months, they had demonstrated an accomplished track record and an annualized run rate of over $5 million in sales. As luck would have it, the two project managers attended a dinner with a former supplier. After a friendly round of small talk, they unloaded the exasperation of attempting to secure a line of credit to grow the business. The supplier shared that he had successfully refinanced his bank line of credit several years earlier with an Asset-Based Lender and offered to provide an introduction to his lender, Virginia Commercial Finance (“VCF”).
At their first meeting with VCF, the business owners recognized that this lender had the capability and expertise to tailor their financing to their needs. VCF took the time to review their business plan, as well as listen to the story and background of the two owners, quickly determining the real value in the business. They had finally found a lender who understood the unique opportunities and challenges of their industry.
VCF presented a customized financing solution for the two owners, providing guidance and consultation throughout the entire process. With their current facility, the business is thriving and the owners are finally realizing their personal and professional goals. When you partner with the right lender, 1 and 26 can become a winning season!