How This Oil Pro Created a Sustainable Energy Business
This small business had massive growth potential. But it needed to overcome cash flow issues around tax time. Here’s how they solved this challenge quickly.
Jesse Hermon’s oil field business grew quickly, but delayed customer payments made it difficult to make payroll and meet tax obligations. He reflects on how a simple funding solution boosted his cash flow and brought him peace of mind.
Alaska Thermal Fabrications (ATF)
Jesse Hermon is an oil and gas industry veteran who knows how to spot the right opportunity and capitalize on it. A perfect situation arrived after an international oil company sold its assets to a local American firm that preferred doing business with small companies. That’s when Jesse launched Alaska Thermal Fabrications (ATF). ATF works across the oil-and-gas supply chain and specializes in mechanical work, insulation, scaffolding, carpentry, and other specialized solutions for its clients. The firm grew to 34 employees in just four years. However, as the business expanded quickly, it faced a challenge that most growing firms do: Managing cash flow. It would need to learn more about supply chain financing.
Large energy companies tend to have long payment terms. This practice forces smaller companies to do the work and then wait weeks or months for payment. Since it’s a competitive industry, small firms must accommodate bigger clients. But delayed payments can quickly hinder a firm’s ability to manage cash flow and day-to-day affairs. Jesse struggled to meet payroll and tax payments. Some employees saw delays in their paychecks, which impacted morale. Without a way to fix his firm’s cash-flow gaps, Jesse likely would have downsized his firm. He said he may have shut down his firm if he didn’t find an innovative funding solution.
No Hassles, Just Easy Cash Flow
“I needed something simple and to keep track of invoices. I thought it would add more to my plate, but it hasn’t. FundThrough has been great for us.”
FundThrough already had a presence on the e-invoicing system used by ATF and their major client. FundThrough could finance ATF’s outstanding invoices and give Jesse the money he needed to make payroll, pay taxes, and meet other expenses. Jesse admits he was wary at first. However, his client’s experience with FundThrough gave him peace of mind to explore this funding option. He quickly realized that FundThrough was an ideal partner for his business. ATF hasn’t missed payroll or been late on any payments since working with FundThrough. ATF also used the capital to hire great people and buy new equipment. With cash flow challenges solved, he takes great pride in watching his employees buy homes and start families.
Peace of Mind With a Trusted Partner.
“When I saw [our client used FundThrough], I looked further into it and decided it was the best thing to do for our business.”