Small business lending companies seem to be a dime a dozen. Small businesses have the option of going with a traditional bank, a credit union, or any number of lending companies online.
However, not all businesses fit neatly into the boxes created by these lending institutions. Some specialty companies need a special type of loan.
Enter Greenlock. This lending company was created by contractors for contracting companies—specifically those in the insurance restoration industry.
The founders of Greenlock have deep ties to the insurance restoration industry. Some have worked in it themselves, while others have family members in the business. But everyone at the company has a good understanding of just how difficult running this type of business can be.
Here’s the dilemma that most insurance restoration contractors face: They take on a job to restore a property damaged by something like a flood or fire that is covered by an insurance policy. On the surface, this seems like a great gig—guaranteed payment from their customer’s insurance company! The problem is, there is no payment upfront, so the insurance restoration contractor must use his or her own resources to cover the project, including the cost of materials and labor. Once the project is finished, it may still take 60 to 90 days until the insurance company pays out.
As you can imagine, cash flow is a constant issue for most insurance restoration contractors. Traditional lenders like banks or other small business lenders may not understand their situation. They see things like a poor credit score and assume the company is in trouble, when the reality is, they just aren’t being paid in a timely manner by their clients’ insurance companies.
Greenlock approaches loans to insurance restoration contractors in an entirely different way. They take a personalized approach. They don’t just look at credit scores, but also at the company’s history and its ability to perform. They also offer unique loan products, tailored to the needs of insurance restoration contractors.
For example, they offer project-based loans that will give contractors an advance on the money to be paid out on a specific project by the insurance company. They also offer accounts receivable financing, also known as AR financing or invoice factoring, which gets the contractor paid now on their outstanding invoices. By utilizing these loan products, insurance restoration contractors are able to better manage their cash flow, keeping their projects moving forward and their business on a path toward growth.
Insurance restoration contractors who have worked with Greenlock for funding say that the loans have truly revolutionized their businesses. They no longer have to worry about making payroll or being able to cover the hard costs of a project. Instead, they can focus on growing their companies.