Like many small business owners in the service industry, Derrick Olson has periodic cash flow problems. Projects are bid on and won, but there isn’t always enough cash in the account to procure materials for jobs. The problem? In a word, timing.
Most of Derrick’s customers pay their invoices in 30, and at times, 90 days. But to keep operations humming along, he has to invest in materials while waiting to be paid. Of course, there’s the expense of running a business (rent, payroll and utilities) to account for, too. So when the timing of cash inflows and outflows is off, Olson Custom Blasting can quickly find itself, as he puts it, “in a world of hurt.”
“I have jobs coming up and material I need to buy, but my deal is this: I have to wait 30 days to get paid,” says Olson. “I’m not a big business, so sometimes it’s hard to make it through until you get that check.”
And when a critical piece of equipment fails, as was the case when Derrick’s welder went down days before a big welding job, the crunch can become crippling. “The welder machine I had was going down on me, and I had a big welding job coming up.” For Derrick, there was only one option, “I had to buy one.”
To bridge these gaps in cash flow, Derrick periodically seeks funding. “If the account is running low and I know I’ve got to buy a couple-thousand-dollars’ worth of materials, or I need money in the account to cover an ‘uh-oh’ expense, that’s when I pull the trigger and seek funding. That way, I don’t stress; I know the money’s there.”
For Derrick, it’s all about accessibility to and speed of funding. “I’m not computer savvy. I’m not in the office a lot. So, I don’t want to jump through hoops.” And that’s what drew Derrick to Fast Capital 360.
With every funding instance, Fast Capital 360 Business Advisor Kris DiRenzo, and Funding Administrator Casey Rothwell, walk Derrick through the process. “They email everything to me. It’s a 3-step process: read this, fill this out, give me these statements and that’s it. In 1 day, I’m funded.”
Since 2016, Derrick has worked with Fast Capital 360 11 times. “We’re now at the point where I can call Kris and say, ‘Just go ahead and do your thing and fund me.’ It’s been a blessing to work with Kris and Casey because they sure help me out and make things happen for me.”
And happen they have. By working with Kris and Casey, Derrick has the cash on hand to take on new jobs, purchase and replace essential equipment (including the welder) and sustain operations during slow periods. “It’s just been a tremendous help,” explains Derrick.
With the assurance of Fast Capital 360 funding, Derrick is pursuing more commercial work. “That’s where the money is,” he says.
To that end, he recently purchased an epoxy paint sprayer. “What I’m trying to step into now is doing more epoxy coatings for the oil field industry,” he explains. “Going inside and coating the inside of big tankers that haul acids and crude oils.”
If he can break into and service this segment of the industry, Olson Custom Blasting could see a $10,000 increase in weekly earnings.
For Derrick, the key to success rests in honest, hard work and trusting your intuition. “If you feel it in your gut that you need to pursue an opportunity, you should do it and get funded. It will make your future that much easier.”