Avenir Technologies develops high-tech commercial enterprise data center solutions and services clients such as government agencies, Fortune 100 companies, major air traffic control centers, and large automotive companies. Despite this impressive customer base, Avenir Technologies found itself strapped for cash.
President and CEO of Avenir Technologies Kenneth Bloom is a 25-year industry veteran. “Cash flow is always an issue with small companies” he explains, “but the high front-end costs of technical manufacturing make it an exceptional cash flow intensive industry.” Not only are the front-end costs substantial, but the time between investing capital and receiving payment is often extreme. For Avenir Technologies, it takes between 18 months and 2 years to develop a product. Once the product is on the market and an order is received, it can take anywhere from 8-10 weeks to customize and manufacture the product. The customer is invoiced once the product has shipped, and then Avenir Technologies waits for the client to pay the invoice, which does not always happen in a timely manner. For every order, the company may be forced to front the cost for production for months without seeing any return.