Medical Supplier uses working capital to cashflow
Business leaders try to do everything they can to set their companies up for success.
But sometimes things happen that are completely outside of your control — and that can lead to big problems. That’s what happened to Brannons Medical, a medical supply business that’s been serving the community in San Jose, California, since 1969. The company is the premier provider of home medical equipment in the area, and they have a large contract with Santa Clara County that makes up a significant portion of their business.
In the summer of 2019, they had been doing business with the county for over 10 years without issue. But when the contract expired, employees within the county dropped the ball on the renewal. Because the county has a strict policy that no payments can be made on expired contracts, Brannons suddenly saw their cashflow hit a major snag, through no fault of their own.
With 20 employees to take care of and a business to keep running, General Manager Jackie Affonso had a serious problem on her hands.
“When there’s a delay in payments, it really kills our cashflow,” Affonso said. “We needed money for operating.”
During this difficult time, a colleague recommended Channel.
“I can get money every day of the week to buy equipment, but what’s more difficult to get is just money to help your cashflow, for daily operations,” Affonso said. “That’s where Channel Partners comes in. They provide quick approvals and quick cash.”
By working with Channel, Affonso was able to quickly secure the funding she needed to keep things running smoothly. Affonso said it would have taken at least 60 days to get funding from traditional banks, if she would have gotten any at all. So, she said she appreciated the speed and responsiveness of the Channel process.
“I’m just so thankful because I don’t know what we would have done,” Affonso said. “I think it was worth every penny just to have that peace of mind when I needed it.”
Simple, straightforward process
As a small-business leader, Affonso said she gets solicited by lending companies all the time. She’s explored some of those companies, but found that they left her feeling more like a target than a valued customer. “You feel like you’re in a used car lot,” Affonso said. “It feels like they’re trying to get away with stuff.”
Having now completed five separate deals with Channel, Affonso said the experience is completely different. She said the simplicity and transparency of the process makes it easy to understand the terms of the agreement and feel confident about the deal.
“I can read [the contract] in five minutes and say, ‘This is an honest deal. This is exactly what I’m signing up for,’” Affonso said. “You don’t get that same information and that same kind of truth from these other lenders.”
In addition to the process, Affonso also said it was the people at Channel who really made a difference. She said she appreciated the way Matt, her Channel representative, worked hard to ensure all of her questions were answered and her needs were met.
“When you work with Matt, you feel like you’re working with a friend of yours,” Affonso said. “He was always honest, super helpful and super positive. But more importantly, he did exactly what he said he was going to do, and it was so quick that it was unreal.”
After going through the process several times, Affonso said Matt has become a true partner in helping Brannons succeed. “I feel like he really cares. The deal is done and he’s just still available to help me, to be there,” Affonso said. “It makes it so much better to have somebody like that to help you.”
While she certainly hopes to avoid similar cashflow problems in the future, Affonso said it’s comforting to know she has a lending partner she can count on in times of trouble.
“I haven’t found a better process, better people or a better term loan than Channel Partners,” Affonso said. “I really think they’re a great company.”