Read on to find out how getting paid early helped V&H Machine cover their expenses, fulfil major customer orders and increase employee hours during COVID-19.
Victor Hernandez owns V&H Machine, a small business based in Midland, Texas. His company supplies machine parts to some of the biggest companies in the American oil industry. In operation since 2010, his business employs seven employees and he is proud of the work his company does to serve its clients.
Prior to the pandemic, Victor would occasionally receive letters from customers extending payment terms. This was an inconvenience, but he had the capital to maintain operating his shop. However, when COVID-19 struck, Victor’s circumstances drastically changed as the oil industry collapsed and he was forced to shut down production. Compounding this challenge, other customers suddenly started extending payment terms, which increased the risk of being unable to pay employees and keep the business afloat.
In June 2020, V&H Machine reopened and Victor soon received a big order from a customer. However, the payment terms were for more than 6 months, which presented a major issue for cash flow. The banks were either chasing him for repayments or suggesting strenuous, difficult and lengthy loan approval processes.
“I went to a local bank to get access to financing, but they were asking for so many documents, it felt like a never-ending, impossible process,” said Victor.
While Victor was attempting to lead V&H Machine through the difficulty, he received a phone call from Cassandra, a Supplier Success Manager from Taulia. Cassandra told Victor that he was eligible for the Taulia Early Payment Program offered by one of his major customers. She explained that he could be onboarded almost instantly and he could request early payment on his outstanding invoices. All Victor had to do was fill out one form and after signing up, he was paid within 2 business days.
Getting paid early helped Victor cover V&H Machine’s expenses and fulfil the major customer order. As business picked up, he was also able to increase his employees’ hours from 32 hours a week, back up to 40 hours.
“When I heard from Cassandra, I was so relieved as I was really in a bind. My bank was chasing me for repayments and my cash flow reserves were worrying for the short-term future of the company. The early payment program relieved alot of this pressure and stress. I was particularly struck by how Taulia went out of their way to help and make it easy. Taulia truly embodies the ethos of putting customers first and making sure the customer is always informed. I’m just glad Taulia was around to support me and my business.” says Victor