Accounts Receivables Purchasing Case Study - AIM Business Capital

TRE Buyer Profile

Brent Stolzenthaler knows a good business opportunity when he sees one. As a serial entrepreneur, he has built numerous ventures into large, successful organizations. Rather than specialize in one industry, he has diversified his portfolio to include businesses ranging from logistics, oil and gas services, restaurants and receivables finance. As a business owner, he knows the crucial role having access to flexible sources of working capital can mean for the success of a growing company. In fact, it is precisely because of this firsthand knowledge of the importance of optimizing working capital that he started his receivables finance company, AIM Business Capital, in 2007.

The Cash Flow Challenge

While developing his numerous businesses, with over 2500 employees and operations in 5 states, he quickly realized the critical need of short-term finance. “All of our businesses rely heavily on cash flow to be able to weather the fluctuations of the business-cycle,” said Mr. Stolzenthaler. “If you don’t have access to cash when things slow down or payments from customers are extended, you won’t be around to enjoy it when things pick back up again. Optimizing short-term cash flow is the key to surviving the fluctuations of the business cycle. You may be able to deliver the greatest products or the best service in your industry, but you’ll be out of business tomorrow if you don’t have the cash on hand to weather the fluctuations of a growing business.”

Expand Portfolio Depth & Diversity

Brent started AIM Business Capital to help companies gain access to short-term capital and improve their cash flow position. AIM is a regional commercial factoring company based in Lafayette, Louisiana that has earned a reputation for providing superior customer service while doing an excellent job running its back-office operations. In less than 12 months, he has been able to grow his business into a multi-million dollar volume company by remaining diligently focused on his dual “front-back” strategy. However, Brent is now looking for new opportunities to broaden his current business model. For AIM Business Capital, The Receivables Exchange allows him to increase his originations, diversify his portfolio and put more capital to work.

In the less than four weeks that he has been a Buyer on the Exchange, Brent has utilized it to enhance and grow the success of his current receivables finance operations. He has participated in four auctions and appreciates the efficiencies, scalability and flexibility the Exchange provides its Members. “By bringing Buyers and Sellers together on one centralized platform, the Exchange allows them to participate only to the extent that they need and want to at any given time,” commented Brent after one of his more recent auctions. He sees The Receivables Exchange as a great compliment to his current AIM operations, allowing him to broaden the reach and diversity of his receivables portfolio.

“Being a regional business, the majority of our clients are in the Southeast,” added Brent. “While we have been successful, we have been limited in our ability to expand the company beyond our regional reach. Through the Exchange, we suddenly have the opportunity to deploy capital into businesses that we would otherwise never be introduced to and we’re able to pick and choose those that make sense for the diversity we’re looking for at any given moment. It’s truly an amazing growth opportunity with no increase to our cost of customer acquisition.”

A Win-Win Opportunity

Every day, more capital providers like AIM are signing up as Buyers on The Receivables Exchange to broaden the reach of their portfolio by gaining access to millions of small and mid-sized businesses seeking to increase their cash flow. By taking advantage of the centralized TRE Marketplace, Buyers can increase originations without increasing marketing or broker costs. And, because the Exchange offers a diverse set of receivables for purchase, Buyers such as AIM are able to diversify on both a geographic and industry level. For Sellers, because TRE connects them with Buyers from around the World, they benefit from the transparent, competitive environment fostered by having multiple Buyers bidding in real-time for their receivables on the Exchange.

ABL funds, commercial banks, factors and hedge funds are registering with TRE to gain access to the low-volatility, low correlation opportunity that the receivables asset class presents. Using the TRE Marketplace model of transparency of information, straight-through-processing (STP) of information, and real-time open auction competition, TRE is striving to become the leader in short-term finance to small and mid-sized business. Buyers such as AIM Business Capital continue to benefit from the increased selection of small and mid-sized businesses who are signing up as Sellers to increase their liquidity vis-a-vis this global network of receivables Buyers. At The Receivables Exchange, it’s a win-win for everyone.

For more information on AIM Business Capital, visit www.aimbusinesscap.com.