Rolling Bridge Capital is Solving Working Capital Challenges for Small Businesses
Dan Loiacono
Executive Advisor, Performance Coach, and Business Development Professional
Most small business owners (under $20 million in annual sales volume) are in constant pursuit of new business opportunities as they strive to grow their companies. But what happens when these emerging companies land a big deal that can make a meaningful difference? What happens when a small business’ sales strategy works and they finally get the orders they have been hoping for? After the celebration settles down and reality sinks in, small businesses often find themselves in an awkward position. While a big order looks great on the books and looks even better when the money is received, the painful truth is that, before these small businesses can receive that money, they need to fulfill the order.
The cost of fulfilling a big order can be significant and require cash to fund raw material costs, labor costs, and other necessities. The cash cycle is further extended as the fulfilled order is finally converted to a receivable. However, it can sometimes take 30 to 45 additional days to receive funds from the customer on such a large order.
Unfortunately, too many small businesses don’t have sufficient working capital, a line of credit, or other sources of short-term capital to make the most of an opportunity like this. Some emerging business owners seek out angel investors, venture funds, or mezzanine funds to help gather the capital required. However, seeking outside investment capital too early or during a pre-growth valuation can be a costly mistake.
The concept of Rolling Bridge Capital was born out of a desire to empower growing companies with the capital they need to benefit from these potential “tipping point” opportunities without the need to give up equity.
As the name implies, Rolling Bridge Capital is intended as a short-term tool to bridge the financial gap until you have gained enough traction to grow out of the need for Rolling Bridge’s short-term rental capital or if your company becomes ready for a more permanent financing instrument.
How Does Rolling Bridge Work?
When a P.O. is issued, Rolling Bridge Capital will fund up to 75% of the P.O. amount, which can be used for direct costs to fulfill the P.O. Once the order is converted to a receivable, Rolling Bridge will fund up to 90% of the outstanding receivable amount. When the customer pays the invoice, Rolling Bridge is paid for the original amount plus interest, while your company keeps the balance.
Rolling Bridge Capital has a variety of financing solutions beyond P.O. financing. Our goal is to help as many companies as possible to grow and improve their financing status. If you are a small business owner looking for alternative ways to grow and finance your business, contact us. We will walk you through the simple process. Many of our customers were unaware of this financing option and stopped their growth too early in the process.
Rolling Bridge Capital - A new and innovative take on financing
Dan Loiacono
https://www.rollingbridge.com