Our customer was subcontracted to work on a multi-phase construction project. The type of project with large budgets but slow payment times. He needed to get paid fast so he could use the money to purchase materials and rent equipment.
Unfortunately, his customer can’t get paid until later either. He has a great relationship with his customer but there’s nothing he could do to help.
He tried to get financing from a bank, but he’s not creditworthy enough.
His company isn’t creditworthy enough but his customers' company is.
And all we care about is the invoice receivers credit rating.
After a quick and easy application process, and approval from his customer, he got paid upfront and his customer got an additional 90 days to pay his invoices.
Getting this money normally requires applying for equity, project or risk financing. But, as we established, his creditworthiness wasn’t exactly perfect, so he was either getting rejected or quoted extremely high prices.
With a credit stretch, he got an approval in minutes and received the money in his account before the end of the day. Not only did he save money; he also saved the time it takes to apply for finance and be subjected to the financial interrogation process. Our customer decreased his payment time from 66 days to 1 day.
But it wasn’t just him who benefited. His customer did too. Because now he has 90 extra days to pay his invoice, without cost, giving him the financial freedom to grow.
With Fellow Pay, everybody only wins and nobody loses.