A local landscaping company with 15 years' time in business and $10M of annual revenues selects Fora Financial as their funding partner with one goal in mind: 50% year-to-year growth.
Vision
With an immediate objective of substantial bottom-line growth, the landscaper's long-term vision was to lay a robust foundation that will drive over 50% growth in 2024, establish their presence as a leading player in the commercial and municipal landscaping sector, and while build lasting partnerships that propel their success well into the future.
Opportunity
At the beginning of 2023, many larger local contacts expired, providing the opportunity to transition into the municipal and commercial sectors. The owner wanted to shift strategies away from smaller residential projects, aiming to diversify revenue streams.
Challenge
Liquidity Gaps
Upfront costs for larger municipal and commercial jobs exceeded cash flow from smaller residential projects.
Bank Limitations
Traditional lenders had slow processes and restrictive terms, delaying access to necessary capital.
Equity Retention
Owners sought funding without giving up equity, making debt financing the best option.
Urgent Capital Needs
The company required fast funding, flexible terms, and early payoff discounts to reduce costs.
How Fora Financial Helped
Directed to Fora Financial from a strategic partner, the partner made it clear that there were three key factors that would get the deal done: (1) speed, (2) flexibility, and (3) early payoff discounts. Initially only looking for $250k, after the company learned that their cost of capital would be significantly discounted if repaid within 6 months instead of 12, they requested a higher approval amount from Fora.
Originally approved for $600k, after conducting due diligence on the business and talking through the move-forward strategy with the company's leadership, Fora Financial improved its offer to $750k. This allowed the company to hire additional staff to take on a few multi-million-dollar jobs and acquire materials for those jobs.
Results
Immediate Utilization
The company swiftly put Fora's $750,000 approval to work, deploying the funds where they were needed most.
Cost of Financing Incorporated
By factoring the cost of financing into their contracts, the business positioned itself for its most robust quarter ever in Q1 of 2024.
Sustained Growth
Ample gross margins resulting from Fora's financial support are fueling continued growth for the company, aligning with their long-term vision.
Conclusion
If you own a small business and are looking to scale, liquidity and capital availability is essential. Don't look for capital only when you need it. Instead, build relationships with a capital provider and know what you qualify for before it becomes a necessity. That way, you can build it into your short and long-term financial plans.
Why Fora Financial
The company's decision to partner with Fora Financial was based on several key factors:
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Speedy Access to Capital
When time was of the essence, Fora Financial provided the rapid access to capital the company needed to seize a growth opportunity.
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Flexibility to Suit Needs
Fora's flexibility in tailoring funding terms allowed the company to choose a repayment schedule that aligned with their financial strategy, ultimately reducing their cost of capital.
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Relationship-Driven
Fora Financial's referral by a strategic partner underlines their strong industry relationships, emphasizing the value of working with a well-connected financial partner.
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Comprehensive Due Diligence
Through rigorous due diligence and open discussions, Fora Financial demonstrated its commitment to understanding the business and adjusting its offer to better suit the company's goals.
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Cost-Effective Growth
The partnership with Fora Financial enabled the company to grow cost-effectively, positioning them for a record-breaking quarter and sustained expansion in line with their long-term vision.