Armed with a solid business plan, Shirish Mody launched Homeline, Inc. in Louisville, KY, in 1999 to meet local home healthcare organizations’ growing demand for medical supplies. Homeline’s sales quickly reached levels of robust health in the Louisville market, leading Mody to take the business nationally. This might be considered a risky move in the fast-growing but increasingly competitive home health care sector. “When I first opened the business, I knew that maintaining cash flow would be a significant strategic challenge to our profitability and growth, especially in such an aggressive industry,” said Mody, chief executive officer.
Seeking a competitive advantage, Mody made a strategic decision to partner with Bibby Financial Services (BFS) for receivables funding, which helps to improve cash flow. As Homeline processes orders, BFS funds the company up to 92 percent of the value of the invoice within 24 hours. The remaining balance is paid to Homeline, less a small service fee, once payment is received from its customer. “As our business grows, so does the amount of funding we have available, thereby allowing us to consistently meet increasing demand,” said Mody. “It enables us to buy new product and utilize our vertical distribution partners to ship additional product for new orders immediately.”
Teaming up with a financial solutions company like Bibby Financial Services offers many benefits for Homeline. The company has grown into a multi-million dollar distributor and a major industry player, supplying more than 15,000 products to home health care organizations nationwide. Additionally, the partnership frees up valuable management resources for new business and other critical initiatives. BFS manages Homeline’s accounts receivables by preparing and distributing statements, contacting customers and collecting outstanding invoice payments on the company’s behalf. Relieved of these administrative tasks, Homeline’s staff is able to focus on processing orders and serving their customers. “By managing our receivables, Bibby Financial Services has taken away all my day-to-day headaches, so I can constantly focus on growing my business,” said Mody.
BFS works with Homeline to determine the creditworthiness of its customers, eliminating the need for Homeline to maintain its own internal credit check department. The company’s reputation with its vendors is enhanced as well. “Because of our relationship with Bibby, we can pay our vendors on time and maintain a solid reputation with this important group,” said Mody.
Another benefit: impressing new customers. “When we meet with potential new business, we tell them that we have financial support from an international conglomerate,” said Mody. “The relationship with Bibby Financial Services allows us to take on additional business much easier than it would be working with a traditional bank.”
Today Mody’s main focus is business growth, and he’s quick to point out that the company is still growing. “We plan to continue our partnership with Bibby Financial Services for many more years and are on target to double our current revenue within the next two years,” he said. “I recommend that any small or medium-sized business partner with BFS.”