Approval Department Funding Client Stories
Hear what other businesses have to say
about working with Approval Dept. Funding.
AR Video Production
Daniel H | Aventura, FL
Daniel invested in his love for video production by starting Ar Video Production, a full service visual content company located in Aventura Florida that specializes in videos for Kickstarters, corporate, and lifestyle brands....
“My challenge is always cash flow,” Daniel says. AR Video Production clients typically pay 40 percent in advance for a product, and the rest after it’s completed.
Daniel uses the advance for production expenses such as payroll, equipment rentals, and logistics. “There’s not much profit for me,” Daniel says. Aside from production costs, “I also have to pay my bills, such as rent.”
Waiting for the final payment is “the tricky part,” Daniel says, “especially if the production actually costs more than the advance and a new month is starting. The backflow of payments can sometimes translate into overdue bills.”
AR Video Production has several contracts with solid companies, Daniel says. But in video production, delays happen. “Sometimes product modifications or manufacturing delays or changes in our client’s management can affect the timely payment of our contracts.” This typically means getting paid later which inevitably triggers cash flow gaps for Daniel and his team.
“If one customer pays even just a few days late, it can really put us all behind,” Daniel says.
The Approval Department helped make this juggling act work for his business. Daniel says: “It came at the right time and solved all the problems I was facing. The Approval Department seemed to be the easiest and the quickest to work with.”
With The Approval Department, taking on a new project is no longer a daunting challenge. “In the past, if I didn’t have cash to pay for a production, I would just turn down the project. It’s ridiculous to turn business down because you don’t have the money, and The Approval Department fixed that for us.”“There are times,” Daniel adds, “when I find myself saying, ‘Man, if I had The Approval Department at that time, I probably would have made $100,000 more in revenue that year.’ It’s definitely one of those cards you want to have in your back pocket.”
Our clients grow with us. They use The Approval Department financing to address everyday funding needs and to pursue opportunities to take their business to the next level. This series aims to highlight the stories of small and medium-sized businesses that have grown and continue to grow with The Approval Department.
Sceptra Technologies
Joel M | San Francisco, CA
The Force was with Joel in 2016. His company, Sceptra Technologies , a consumer tech gadget maker, rolled out its product that year. It was a big success. Suddenly, Sceptra Technologies was on a roll…
“We had a rapid start and needed a finance line to keep up with the demand of supplying national US retailers,” says Joels. Finding retailers to sell its hit product wasn’t hard. But many retailers offered net-60 terms, which was bad news for Joels. Waiting two months to get paid meant he had to scramble for other ways to pay for manufacturing and overhead expenses. He found a solution in invoice factoring which let him get cash advances on unpaid invoices.
But traditional, paper-based factoring was slow and couldn’t adequately meet the business needs. He spent a lot of time manually filling out, scanning, and emailing paper forms whenever he submitted invoices for funding. That turned out to be a hassle for a fast-growing company like Sceptra Technologies that wanted to expand to 30 different SKUs. Joels needed a technologically-advanced factoring company that could handle a large volume of invoices.
The Approval Department, he says, “became a better option as we were trying to scale.” With The Approval Department, the factoring process was more streamlined: Joels can log in anytime, select the invoices he wants for funding, and have money in his bank account within a day. “A software system like The Approval Department offers is critical to us. We run so lean that we need full transparency on the accounting side and quick approval of invoices.”
The Approval Department had real people to help out, Joels says. This became clear to him during their first holiday season run when an invoice payment from one of Sceptra Technologies ’s customers got delayed. With traditional factoring companies, you may get penalized with hefty fees for a delayed invoice payment. But Joels worked with his account manager at The Approval Department to find a solution.
“Rather than denting our cash flow,” he says, the The Approval Department account manager “allowed us to continue factoring invoices from the good-paying customers, and chip away at the past-due amount with weekly payments.” Eventually, the retailer paid the entire invoice amount and Joels settled the account, and having The Approval Department as a partner helped set Sceptra Technologies up for success during its first holiday run.
Our clients grow with us. They use The Approval Department financing to address everyday funding needs and to pursue opportunities to take their business to the next level. This series aims to highlight the stories of small and medium-sized businesses that have grown and continue to grow with The Approval Department.
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