[codyvs6]

I started an oilfield service company in December of 2014. We got started without much working capital at all. We got an interest free loan of $50,000 from a family member that had to be paid back in 15 months (the loan is paid back now). We worked very hard and built a good customer base in 2015 and finished with 1.2 million in sales. The problem we incurred was that there were some bad months because we didn’t have an established customer base to start with and we spent a lot of money on supplies, marketing and equipment for our operations. We quickly ran out of working capital and had to factor. The factoring helped since our industry is seeing 60-90 day turn arounds currently but in a years time we paid over $60,000 in factoring fees. We have recently moved banks and lowered our factoring rate from a fixed 4 percent rate to a variable that starts at 1.5 and caps at 3.5. In 2016 we lowered our overhead by 30% by negotiating our insurance and workers comp and paid off several pieces of equipment that were financed over 12 months. Our monthly overhead including salaries is around $25,000 and our sales average from 80,000 to 160,000 depending on the month on about 30-40 percent margins. We are now becoming profitable but we spend every dime we get on material invoices that we got behind on while we were slow and had to pay our loan back, and purchase specialized equipment for our line of work. We have really began to hit our stride and our market is finally on an upswing, but I am in need of some working capital. I don’t know much about 2nd positions or who is truly a reputable company to work with. I would love to hear what type of offers would be available to me. Feel free to call 405-808-5900

[bdshaw]

Cody, I think you will get better answers if you told us what you would use the additional working capital for. There are a number of financial alternatives that could be used but many require a particular use of the funds.
Bob Shaw
Advance Credit Funding Corporation
rshaw@advancecredit.com
734-929-3800