Develops high-tech commercial enterprise data center solutions.
The whole financial package is just perfect for small companies. Bibby Financial Services’ solution addressed all of our problems. Every small company should have a lender that will work with them to overcome obstacles, like BFS does.-Kenneth Bloom, Avenir Technologies (President and CEO)
- Product: Factoring
- Location: Morrisville, NC
- Industry: Manufacturing
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.
With such a significant amount of cash tied up in development and manufacturing, Avenir Technologies needed a tailored cash flow solution beyond normal financing. Bloom states, “The banks weren’t creative enough. For a small company, traditional banking doesn’t work all the time and I found the rates for asset-based lending too high.”
Avenir Technologies finally discovered the solution to its cash flow troubles with the help of Bibby Financial Services. Bloom describes Bibby Financial Services as “beyond cooperative” and says, “Everyone at Bibby Financial Services works with you to finds creative ways to solve problems.” A customized, flexible funding solution helped the company bridge the gap between invoices and income.
Avenir Technologies experienced 25-30% growth while working with Bibby Financial Services. Bloom attributes this growth to the increase in cash flow. Funding provided through purchase order finance covered front-end costs and accounts receivables financing accelerated cash flow and turned receivables faster. Avenir Technologies was able to take on new orders and focus on growth. Bloom shares, “The whole financial package is just perfect for small companies. Bibby Financial Services’ solution addressed all of our problems. Every small company should have a lender that will work with them to overcome obstacles, like BFS does.”