Industrial Painting and Maintenance Company
$125,000 Factoring Facility

Located in southeast Houston, this owner-operated industrial paint contractor needed funding over and above its current bank term loan.  The company had grown quickly in early 2006’s, but suffered a severe decline in business in 2008 when energy related projects ceased due to low oil and gas prices.  The bank provided a subordination for a portion of receivables in order to allow Morrell to have clear title for factoring.  Over the next two years the company’s sales increased from $45,000 per month to over $150,000 per month due to returned health of the industry.  Factoring allowed the company to make timely payments on its bank loan and expand when industry conditions improved.  Approximately six months ago the company retired the bank loan and now no longer needs factoring.  The factoring facility remains available if the company encounters a large project.

Contract Trucking
$15,000 Factoring Facility (Multiple Accounts)

One of the large distributors of water and sewer components in Houston had a number of small trucking companies transporting their products from the distribution center to various neighborhoods under development in the area.  The accounts payable department had to deal with weekly payments to all of these thinly capitalized firms and differing invoice procedures for each.  After Morrell standardized the invoice and payment procedures for the first trucker, the distributor referred all six other companies to Morrell for factoring.  Each company was able to invoice on the same day and receive immediate funding.  The distributor was able to reduce interruptions of its A/P department to a minimum and conserve its own cash flow.  The individual truckers received steady weekly funding and professional A/R management services from Morrell.  Many of the truckers were able to expand to other distributors and buy additional equipment.  

Natural Gas Metering Company
$100,000 Factoring Facility

Metering company in north Texas received a $750,000 order for meters to be sold over a six month period of time to a large Oil and Gas Development Company.  The metering company had limited credit with its supplier, also a large multinational distributor.  The metering company was only able to negotiate net 45 day terms with the customer, while agreeing to pay the supplier in 15 days.  The contract was fulfilled in a timely manner by factoring invoices to keep current with the supplier.  With three months of solid payment performance made possible through factoring, the supplier extended the payment terms to match the terms demanded by the customer and gave the metering company a substantial discount on volume purchases.  The metering company is now the sole supplier of meters for the energy company.

• Monthly Sales of $20,000 to $500,000
  
• High-Quality Accounts Receivable
  
• Thin Capitalization
  
• Newly Established Companies
  
• Gross Profit Margin above 20%
  

Equipment leasing

• Streamlined Application Process
  
• $5,000 to $50,000 in leases
  
• Almost all equipment accepted
  
• Fast approval and funding
  

Purchase order financing

• Short and Long Term Availability
  
• Flexible Financing Structure
  

Other Business Services

• Special Financing Requests
  
• Corporate Financial Analysis
  
• Receivable/Payable Analysis
  
• Business Plan Review
  
• Bank/Investment Banking Referrals
  

Factoring examples

 Start Up Businesses.

Owners or Companies with Lower Credit Ratings.

High Growth Companies.

Businesses Selling to Only One or Two Customers.

Companies Having Small or Infrequent Cash Needs.

Businesses Paying for:

•  Payroll
  
• Rent
  
• Loan Payments
• Taxes
• Inventory or Raw Material
  
• Working Capital 

Who needs factoring services?

Invoice Factoring HELPing YOUR COMPANY FIND ITS WAY

Typical client characteristics

 morrell capital can also refer

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