In 2015, we brought you the story of Celtic Hills Security, a Kansas City-based small business that specializes in providing clients with security services and personnel.
We showed how factoring enabled Celtic Hills Security to secure a large corporate account, necessitating significant upfront costs. Invoice factoring, also known as receivables financing, turns customer invoices into cash. It helps smooth out monthly variations in cash flow, ideal for businesses that need cash immediately to continue operating smoothly.
In the example of Celtic Hills Security, factoring has proven to be an essential part of their strategy. It has enabled the company's leadership to simultaneously nurture the current business and grow for the future.
We caught up with Tracy and Renee Hill, owner and Chief Operating Officer, respectively, to see how the business has fared since we last talked.
One of Celtic Hills Security's biggest expenses is labor—i.e. hiring security guards to staff its clients. This came with an inherent timing challenge.
"When you issue an invoice, you have to wait 30 days," said Renee. "I couldn't let my employees go 30 days without paying them."
For Renee, factoring made perfect sense: it generated cash flow and permitted the company to cover payroll expenses.
Tracy, on the other hand, wasn't so easily swayed.
"No business owner wants to share their money with somebody," she said.
As we wrote in 2015, the event that convinced Tracy of factoring's effectiveness involved the company's biggest contract to date, and a turnaround time of just five days. To take the business, Renee and Tracy needed cash—fast. QC Capital Solutions helped them unlock the cash they had sitting in accounts receivable so they could use it immediately.
A personal relationship
Since that time, QC Capital Solutions has repeatedly earned Tracy and Renee's business with solid business processes and superior service.
Tracy appreciates QC's Capital's approach to reporting and documentation. She can go online and access the company's account and see details on current and past invoices, fees, escrow, and other pertinent information.
"I know exactly where every penny of an invoice is going to," said Tracy. But in a telling sign of the bond between Celtic Hills Security and QC Capital Solutions, she added: "We've been with them so long that I don't even look at it as much as I used to. That's how much I trust QC Capital Solutions."
For both Renee and Tracy, the epitome of that relationship is JD Kinney at QC Capital Solutions. JD's willingness to go the extra mile has earned their respect, as well as their business.
Said Renee, "JD and his team are Johnny-on-the-spot. You send them an email; they respond back quick, in a timely manner."
"I have JD Kinney's personal cell phone on speed dial," said Tracy, who also couldn't resist sharing a JD service story: "JD was out of the country on vacation, and he returned my call and wanted to know if there was anything he could do!"
The five-year mark
Factoring is an especially good fit for businesses in certain situations. For example, a business that has very little equity can use factoring to leverage their most valuable asset: customer invoices.
Similarly, businesses with few assets, a less-than-stellar track record, or short credit history often have trouble meeting big banks' criteria for lines of credit. In these circumstances, a factor can offer a viable solution.
The story of Celtic Hills Security illustrates how factoring is frequently introduced in such extreme circumstances, but over time becomes a critical part of long-term strategy.
After five years of doing business with QC Capital Solutions, is there any part of the relationship that can be improved on?
"This is the best factoring I've ever seen," said Renee, who's worked with other factors in previous positions.
Added Tracy: "QC Capital Solutions is great with their paperwork; they're great with their response. The same is true with their communications, and they go above and beyond."
As Celtic Hills Security continues to win accounts and hire employees, purchase vehicles, meet tax obligations, or face any financial challenges, JD Kinney and QC Capital Solutions will be the trusted financial partner that helps secure their future.