After years and years of only working with local partners, you’ve finally landed that game-changing deal with a major business. This is the opportunity you’ve been waiting for to increase revenue and brand awareness on a mass scale. Your new partner sells primarily to your target demographic, and a long-term relationship with them will give you the experience you need to expand even further.
But soon after closing the deal, you find out that satisfying this company’s exacting demands is a lot harder than you initially imagined. It seems that you simply do not have the resources required for working with a company of this magnitude, which has their own reputation to protect.
Alternative business financing companies like United Capital Source can make sure you are fully prepared to conquer the following obstacles that come with major partners:
1. HAVING PRODUCTS READY AT A CERTAIN TIME
Let’s say you get a call from a big retailer that wants to carry your products on its shelves. These shelves, however, must be stocked all throughout the year. In other words, you have to have a certain amount of your products ready at a certain time, with no exceptions. If you are a business that makes a food item, the products you distribute must have a certain shelf life, meaning you have be continuously making new products. But since you’ve only previously worked with smaller businesses or farmer’s markets, you’ve never had to maintain such a high level of productivity.
You need a bigger team with better equipment, and you need it soon in order to fulfill your obligations to your new partner. Banks will make you wait months to approve small business loans but United Capital Source’s unsecured business loans can be approved and distributed in a matter of days, regardless of the size of your operation. And unlike other quick-thinking business lenders, we have access to myriad funding programs capable of accommodating virtually any business’s financial circumstances. In this situation, the business would be short on cash until they are paid for their order and sales start coming in, so we would structure your terms to let you make larger payments for when you have the cash to do so.
2. THEIR SCHEDULE, THEIR TERMS
Funding your operation would be a lot easier if you received payments on a consistent schedule that directly corresponds to your regular or monthly expenses. But the larger the account, the longer you will likely have to wait to be paid in full. This presents a world of problems for smaller businesses that must keep their operations running to meet the standards of their partners. Clients of United Capital Source eliminate this obstacle with accounts receivable factoring, in which your business lender purchases important accounts so you can be paid up front whenever an order is placed.
Accounts receivable factoring gives your cash flow a sense of predictability and gives you the ability to increase staff or buy new equipment when the need for either investment arises. Waiting for payments diminishes your profit margins little by little, decreasing your options for how to spend the money. But with accounts receivable factoring, you can plow more money into your business at a much faster rate than usual and prevent productivity from slowing down.
Another crucial investment you can make with this unsecured business loan is marketing, which brings us to #3:
3. INTRODUCING YOURSELF TO THEIR CUSTOMERS
The fact that your new partner sells to your target demographic is in no way a guarantee that customers will immediately buy your product once it hits the shelves. With no marketing presence in the retailer’s location, you’ll run into trouble connecting with their customers. They have to know who you are. The type of marketing you choose to invest in depends on the nature of your retailer, though field marketing has traditionally proven to be highly effective for retail customers. But hiring a team to hand out samples and conduct other guerrilla marketing tactics is expensive, and your product is yet to make its big debut.
Lucky for you, United Capital Source has years of experience financing marketing initiatives that do not produce returns right away. We offer several business funding programs capable of paying marketing teams up front or month-to-month with payments that vary based on the success of the campaign. Accounts receivable factoring is perfect for marketing since you can schedule the initiative to start around the time your order is processed and stabilize your budget with the sales you generate as a result.
PROCEED WITH CAUTION: CALL UCS!
Many small businesses have secured partnerships with big businesses only to find themselves hundreds of thousands of dollars in the hole shortly after. This is likely because they assumed their success would be as simple as arranging shipment of their products and maintaining the same level of productivity they started with. They did not anticipate the need to invest in getting the partnership off to a great start or how the payment terms of their new partner conflicted with their accounts payable pressures. United Capital Source works with small business owners who recognize such precautions because we know which resources are most vital for keeping important clients. This isn’t a relationship you want to take lightly, and in just a single phone call, we’ll show you that the same concept applies to your relationship with UCS.