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And -- spent twelve years to want ice from expanded her marketing and management firm from working following her basement to twelve employees and office building in Washington DC.
But -- experienced some growing -- along the way we need capitalism.
To be it was a fun time employees can often -- fine computers.
You never really on it you never really know how much -- cost disease and you know.
I think contract based business started to become bigger and require more -- -- -- Good news for business but -- on cash flows that payment test -- -- after work.
Once we acquired our first major contract with FEMA -- and economy was in -- states.
Because isn't independent consultant they look -- -- credit and that credit at that time was not.
Ops and eight plus credit it was a bad that you just wasn't to the point they -- willing to give me a million bank.
Ticket and she needed she turned to factoring.
Backing -- -- -- third party -- businesses -- at a discount which is essentially -- cash advance future revenue for fear percentage of that income.
I sometimes -- Gary Hoenig president of -- income.
Be creative capital associates in Washington.
Thanks for the most part look at two things they want liquid collateral that they can turn into the capital that they loan.
But the other thing they're looking at his cash flow they want to see historical record.
Revenues going through your business to see -- that you can afford the loans that they're about to give you.
With the factoring that cash flow is not critical to us we're not looking forward looking at is the proceeds of the work that you are.
Do get a job you do work they owe you money that's alone.
Cash flow issue -- top reason most -- businesses fail too much credit markets are tight small businesses are seeking alternative funding.
When asked just -- for money to throw his Seattle based cloud computing -- 2000 -- he needed financing but he wasn't willing to relinquish any ownership or give -- equity.
I was looking.
For financing alternatives to -- the business.
You know I had.
They've -- business where -- -- with the resources.
That I had.
Knocking on doors and Angel investors I was too small for venture capital.
You know it's really looking for different options -- you.
For Pearson's and capital -- when he did that happen my equity.
You returning to a faster.
And I was really.
Just trying to beat the bushes in terms of what's out.
-- -- -- -- he was looking for with revenue based financing firm white or capital that provides him alone and then takes commission based on how well his business performs.
That was six is that okay now have debt outstanding me pay back.
And war and what's -- a percentage of the revenue is going to go -- world history.
To us that we -- the investor confidence that taking equity.
Or equity personal guarantee we're taking a percentage of the revenue for.
Period of time it would expect you look for -- chemistry at least 100000 dollars and we like to see some through subscription base so that got a lot of recurring revenue that comes months after months since we're lending -- history.
That equality he's -- -- difference.
Tested just pleased with the -- ecosystem and that this company has -- 260.
For fat -- -- last few years.
As a result we've been able to double our our staff we've we've moved into 3000 square foot office.
You were truly.
Functioning company have gone from.
Chief if you were to you know managing departments.
I'll -- -- financing options are almost always going to be more expensive traditional bank loan and small business -- -- shop around for the best terms and fairly researcher company before signing a deal.
Experts also warrant to keep -- finding that it's short term.
I'm -- Axel.