Meet the Client:

A business owner recently reached out to me.  His business is a few years old and provides consulting for various intelligence agencies.

His business was doing well and he felt the work he was doing really mattered. But he wanted his brass ring: to grow his business.

His brass ring presented itself when he was given the chance to bid on a larger government contract.

The question:  Where could he find the working capital to finance his growth?  Could Wave Crest put him on the path to claim his brass ring?

The Situation:

For the new contract, he would have to hire new people. The new people would generate more money… but not before he spent money to hire the people to do the work.  It’s a chicken-and-the-egg scenario. A scenario that stalls many entrepreneurs. The window for him to bid on the contract was closing.  His brass ring would soon disappear.

Conventional wisdom says that if you need money, get a loan.  After all, he already had a solid business. He had revenue and accounts receivable.  How hard could it be?


Lenders want security.  Lenders want collateral.  Collateral is not something a consulting business has.  How about his home? His car? If his business failed, what would that do to his family?

In the middle of everything, the worst happened.  The Government shut-down. Lenders were nervous about lending money to contractors because of what the news headlines said.  

Mark Cuban, owner of the Dallas Mavericks and star of ABC’s Shark Tank, said   

If you take a loan, you are no longer the boss. And your customers are no longer the bosses. Your banker is the boss. And if you hit any adversity, like every company does, the priority becomes taking care of your banker . . . You’re no longer in a position to do whatever it takes to survive.

The Options:

Our client had a decision to make.

Option #1 – Do nothing.  Let the contract go. He could continue with his current business, hoping to set aside enough money to one-day bid on another contract.

Option #2 – Take out a loan.  He would have to put his home and car up as some collateral.  Risking the well-being of his family. He’d have to carry debt on his books.

Option #3 – Find some investors. He would lose control of his company and have to share profits. Most likely, the investors would want a preferred return, which means they get paid before him.

Option #4 – Work with Wave Crest to provide the capital they need to grow their business and advanced against the current business through rapid invoice factoring … not guaranteed by his home and or risking the well-being of his family.  A strategy that has proven to produce superior results regardless of market conditions.

The Decision (and Results):

The client decided to go with Option #4.  Wave Crest advanced capital against his current invoices, called factoring, thus providing him with the money he needed to bid on the contract and hire the people he needed to execute on that contract.

This is the simplicity of rapid invoice factoring.  With factoring, he received money that was already owed to him.  Money that he received in two days instead of 30 or 60.

The Result?  He won the contract.  He hired the right people he needed.  His business is growing.

No debt.

No loans.

No new business partners.

No worrying about losing his home.

In spite of the Government shut down.

Ray Kroc, former owner of McDonalds, famously said,

Look after the customer and the business will take care of itself.

Wave Crest did that with our new client. Now our new client can focus on looking after their clients instead of worrying about the banker.

It’s a win-win for everyone.

His dream of building a great consulting business is now a reality.