Success Stories
In sixteen years of funding growth companies and managing accounts receivable in Canada and the USA we have a wealth of client success stories.
If you would like to hear how we’ve grown companies like yours, call Cassandra at
604-984-7334. She loves to tell.
Case study #1: Cash-Strapped
Pyx helps business regain momentum
In August 2003, Pyx Financial Group began working with a rapidly growing
interior finishing company, referred to here as ABC Co. At that time, ABC had approximately $50K in outstanding accounts receivable and was looking to grow its business. The company had maxed out its lines of credit with the bank, and, although it appeared successful, behind the scenes it was being forced to turn business away due to an inability to keep pace with its own growth! The owners, frustrated by their shortage of working capital, contacted Pyx.
As a factoring company, Pyx provides working capital to growing businesses by purchasing their existing quality accounts receivable. In this case, Pyx was able to provide ABC with approximately 80% of the value of its invoices immediately, enabling ABC to purchase the raw materials it needed to fill the new orders coming in every day. Pyx then maintained both those receivables and the new ones, ensuring that ABC was paid by its customers on time and without incident. Any feedback from clientele (positive or negative) was relayed from Pyx to ABC’s owners, and regular reporting kept them in the loop. The time ABC saved on hiring someone to maintain their Accounts Receivable and customer relationships, not to mention training and salary costs, more than offset Pyx’s fees, and provided peace of mind to the owners that competent people were on the job!
Case study #2: New elephant customer
How do you carry large invoices from one customer?
When Company XYZ first came to Pyx, XYZ was young and growing rapidly. Having established itself in a smaller town in which real estate was relatively inexpensive, the company now looked to expand its operation and move to a larger facility. Soon finding that such space was limited in their existing neighbourhood, the owners decided to approach their financial institution for a substantial loan, with the intention of using the funds to purchase a property and build an office to meet their expansion needs. Unfortunately, “green” as they were, these owners did not qualify for the kind of lending needed. They came to Pyx in the hope of strengthening their balance sheet.
Following an initial meeting with Pyx, contracts were signed. In December 2005, Pyx funded $22,000 in receivables for a single debtor that had the potential to become that sought-after (but very risky) elephant customer many companies target for their rapid growth. It was understood that the client would be entering into much larger contracts with this particular debtor, and that XYZ expected its Accounts Receivable to increase significantly in the coming year. XYZ advised that this debtor’s terms of net 60 days had significantly affected their cash flow, and noted that Pyx’s funding on this debtor alone would greatly improve its financial position. This became clear by September 2007, when this single debtor’s accounts receivable increased to over $700,000, and clearer still when it reached $1.2 million by 2008!
XYZ continues to invoice more than $200,000 per week to this debtor, of which Pyx forwards up to 80% to XYZ upon receipt of the invoice. That’s $160,000 per week, or more than $600,000 per month…cash! With the funding provided, and thanks to Pyx’s careful ongoing management of this new large customer, XYZ has not only established its new office space, it also continues to travel the world recruiting and training new employees to join its growing team!
Case study #3: Cash flow is king
Fueling business growth through managing cash flow
In April 2008, Pyx partnered with a transport company with more than $1.2 million in accounts receivable. At the time the company first approached Pyx, it was struggling to keep pace with the increasing cost of fuel. This skyrocketing expense was becoming a big problem in the industry, forcing many transport companies out of business. Fuel companies became stricter with their credit policies, and fuel accounts were being shut down as trucking companies failed to make their payments.
By Pyx funding up to 80% of its existing $1.2 million in Accounts Receivable, our client was able not only to cover its rising fuel expenses but also to meet its payroll and maintenance commitments, while keeping all of its trucks on the road. Although business became slower than normal due to seasonal road bans, the firm managed to maintain a steady course of business where other companies had failed. Having made it through this tumultuous time unscathed, our client now boasts upwards of $1.4 million in A/R and continues to show positive growth.
