From Startup to Success: How Prairie Business Credit Supports Business Growth

99.9 percent of U.S. businesses are small businesses, according to data from the U.S. Small Business Administration. Whether you start from scratch, inherit a legacy business, or purchase an already-established business—the dream of owning a business and becoming an entrepreneur is alive and well in the U.S. today. But all businesses have this in common: the need for capital. Whether it’s to fund a startup, expand business growth, or cover a rough patch, all small businesses need it.

Whatever stage of business you are in, finding the right partner can be the help you need to keep moving forward—for over 30 years, Prairie Business Credit has been partnering with businesses to support business growth.

The Prairie Business Credit story
Trevor Morgan started Prairie Business Credit in 1993 after 20 years of experience with regional banks and private finance companies. Dylan Morgan, Trevor's son, joined Prairie Business Credit in 2003 to continue in his father's footsteps by learning the family business.

Prairie Business Credit serves both as a trusted financial resource and consultant to entrepreneurs in many industries including manufacturing, distribution, technology, service, equipment finance, importing, and staffing.

How Prairie Business Credit can help your business
There are two ways Prairie Business Credit gives cash to your business:

1. Purchase order financing.
2. Factoring.

Purchase order financing is a type of short-term financing that can help your business pay for the inventory needed to fulfill incoming customer orders. In factoring, a company turns over its account receivables to a factoring company.

The factoring company gives the business an advance and then follows up with customers for invoice payments. Once invoices are paid, the client company receives the balance minus a fee. Both types of financing can be just the bridge a business needs to cover a cash gap and succeed in growing and reaching its goals.

The reasons a business may need:

Purchase Order Financing
● Being unable to qualify for traditional bank loans.
● Needing the capital to operate at a larger capacity to fulfill orders quickly.
● Requiring a trustworthy company to help shoulder some of the burden while the
    business experiences new growth.

Factoring
● Needing better cash flow management.
● Capturing new sales opportunities.
● Being too new for a bank loan.


How Prairie Business Credit has helped businesses succeed
Since its inception, Prairie Business Credit has helped nearly 70 percent of its clients progress to bank or self-financing. From its Chicago base, Prairie Business Credit has served clients from coast to coast with the funding and advice they need to stabilize, succeed, and grow.

• Joe Krippelz, Jake’s Inc. Precision Machining and Rebuilding, Aurora, IL, said, “After the downturn, our bank relationship changed. We were getting back on our feet and making payments, but we needed cash to meet our customers’ needs. We looked at a lot of lenders. Prairie Business Credit understood manufacturing and they understood our needs. They came up with flexible solutions that helped us with cash flow so we could take orders, even months out. We didn’t lose orders and they helped us manage receivables, so we stayed on top of past due accounts. Prairie Business Credit supported us until we could get an SBA loan with a bank."
  
  
• Boyd Miller, Wisconsin Thermoset Plastic, ​Milwaukee, WI, said, “I bought Wisconsin Thermoset in 2008. Over the next two years, our sales dropped by 50 percent. As we started crawling back, we needed to find additional cash or close the doors. Our receivables were growing. Our bank’s hands were tied but they introduced us to Prairie Business Credit. Prairie Business Credit helped us with capital for operations and they brought discipline to our invoicing, so collections went more smoothly. In 24 months, we were back on our feet. We’re on top of receivables and control our cash better. Prairie Business Credit are good people, honest, smart, and straightforward—they kept our doors open."
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• Bill White, CFO | Focus Micro, Inc., Manufacturer of Digital Security Equipment and Software, Redmond, WA, said, "We manufacture and resell digital security equipment and software. Venture capitalists offered to fund us, but we wanted to maintain control. Banks wanted a longer track record. When a major retailer selected us for a nationwide rollout, our sales grew from $100,000/month to $1.3 million/month. That's when we called Prairie Business Credit to craft a deal to fund our growth. Now, we're securing a commercial bank line for ongoing capital needs. Prairie Business Credit provided the bridge we needed to take our business to the next level."

Looking to secure working capital for your business? Whether you are a new business, going through a rough financial season, or hoping to take advantage of an exciting growth opportunity, we can help.

Prairie Business Credit is a national working capital provider to young, growing, or recovering businesses. We offer accounts receivable financing, purchase order financing, and equipment financing. Our company serves both as a trusted financial resource and consultant to entrepreneurs dedicated to building their businesses and ensuring their success.