Doug Laviano, Owner of Central Logistics, knows that as a start-up brokerage, access to cash flow is essential for your business to see growth. However, he also learned that finding access to cash and other forms of funding is extremely difficult for a young company, even if you are already factoring invoices with a different company.
Central Logistics’ previous factor couldn’t handle the amount of funding they needed to run their business on a day to day basis, so Doug had to search for another way to receive cash. His solution? Invoice factoring with UC Factors.
Central Logistics is a logistics service and dump truck brokerage based out of Florida. They represent a very specific crossover between the transportation industry and the construction industry as their main market is working with contractors and other construction companies to schedule large scale dump projects and finding owner-operators to deliver the aggregate. Central Logistics also owns its own trucks and delivers aggregate on their own projects as a local intrastate carrier.
Central Logistics’ Challenges:
Central Logistics approached UC Factors in 2017. As a start-up brokerage, especially one who worked in construction, they were working with invoice terms of 60 days at minimum and more often than not, 90 days. However, their owner-operators and other bills needed to be paid every week to continue operating.
"Our owner-operators need to be paid every week or else they can't afford fuel for their truck. We needed a source of funding that could provide that."
-Doug Laviano, Owner, Central Logistics
Doug had been working with another factoring company, but this previous factor wasn’t able to handle the volume and dollar amounts of the factored invoices. A small project for Central Logistics was hauling $10,000 of aggregate in a day. This job could go on for weeks. Their previous factor had a cap on their funding limit and Doug was finding he was having difficulty completing projects due to lack of funding.
Central Logistics had already learned that taking out a loan or a line of credit from a bank as a young company would be extremely difficult, which is why they chose to work with a factor in the first place. However, they needed a factor that would be able to not only provide them funding on a weekly basis, but also one that could handle the volume and amount of their invoices.
In addition to the amount of funding they required, Central Logistics also had very specific needs when it came to the type of invoices they factored. Most companies who factor invoices have one invoice and one bill of lading. Due to the field Central Logistics works in, one of their invoices could have 30-60 bills of lading with up to 15 haulers.
They needed a factor who could handle the specifics of their invoices as well as the ability to fund the dollar amounts necessary for them to operate on a daily basis.
The UC Factors Solution:
After Doug decided it was time to switch to a new factoring company, he began his search online. He called and interviewed around 50 different factoring companies to learn more about how each one operated and if they were able to handle what Central Logistics was bringing to the table.
When Doug reached out to UC Factors, he was put in touch with Ken Moore. Doug explained his unique situation and Ken was the only person out of 50 factoring companies who understood how their billing system worked and what was required of the factor in that situation.
"Ken took the time over the period of a month to speak with us in length to learn about our company and discuss our options for invoice factoring. He was the only person who not only understood our industry but who developed a relationship with us and gave us a good understanding of what was available and what he could provide for us."
Due to years of experience, UC Factors understood the construction industry as well as the transportation industry and they were able to provide Central Logistics with the expertise needed to successfully factor their invoices.
UC Factors was also able to provide the amount of funding needed for Central Logistics to run their business and operate on a daily basis.
Since partnering with UC Factors in 2017, Central Logistics has seen growth in its business every year. Because of the access they had to funding due to invoice factoring, they were able to continue taking on new accounts and growing their business. As a result, they nearly doubled their yearly gross revenue in one year.
Central Logistics was also able to improve business processes relating to billing and invoicing. Working with their previous factor required extensive forms and reports and extra steps for every invoice they factored. This was especially true due to the nature of their invoices and bills of lading.
"UC Factors worked with us to create an invoice setup that worked for them and worked for us and that was extremely difficult to find with other factoring companies. Believe me, I've spoken with over 100 of them"
However, working with UC Factors simplified the billing and invoicing process for Central Logistics. They were able to use one form for each invoice and didn’t need to generate reports or provide any overly complicated paperwork.
Another result Doug noticed was the ability to quickly process and fund invoices. Due to the nature of his industry, he needs to work on a very tight schedule when it comes to invoicing and payroll.
Often, he will be required to send invoices to UC Factors and needs a very quick turnaround when it comes to funding to be able to pay his owner/operators on time. If these payments are not sent on time, the business will not be able to operate on a weekly basis.
Because of the processes they have put in place after years of experience, UC Factors was able to get the information they need right away and work with Central Logistics’ time frame to ensure invoices were factored and Doug received the funding he needed as soon as possible.
This has allowed Doug and Central Logistics the ability to see continued growth during the years they have partnered with UC Factors.
As Central Logistics has continued to grow, Doug has kept his options open when it comes to sources of funding for his company. However, at the present time, there is not a better alternative for him than UC Factors.
The benefits provided by partnering with UC Factors that have allowed his company to grow and see continued success are not available through any other source at this current time.
"UC Factors has not only contributed to our company growth during our partnership, but they are willing to continue to grow with us over the years."
Doug took the time to understand what his unique business requirements were and research a factoring company that understands how to accommodate his needs. UC Factors was the best option for his company because they took the time to do the same throughout their years of expertise and industry knowledge as well as their own thorough research on every company they do business with.
Doug believes this is why he has had such a successful partnership with UC Factors over the years; they have delivered on everything they promised in their initial conversations and have continued to provide benefits and be a partner in the growth of Central Logistics.
Are you interested in learning more about invoice factoring with UC Factors? Contact us today for more information and a no obligation consultation to see if invoice factoring is the right fit for your business.