Founded in 2005, Lift Services Inc. (LSI) is an Ontario-based equipment rental agency specializing in the rental, sales and service of aerial equipment along with machinery used in construction and industrial applications. Although the majority of its customer base is in Canada, LSI also locates and supplies new, used and refurbished equipment for commercial and industrial contractors throughout the United States.
Growth in the equipment rental industry is driven primarily by the strength of residential and nonresidential construction in addition to consumer spending, which means that it can be negatively affected by fluctuations in the housing market. After the US housing market bubble burst in 2007, Lift Services Inc. was among a crowd of businesses in related industries impacted by the slowdown in residential construction.
In need of a means to accelerate cash flow to maintain operations, fund payroll and finance the ongoing purchase of equipment, LSI turned to Bibby Financial Services for a $500K invoice factoring facility in 2007. By leveraging its receivables, the company received payment on its invoices quickly and was able to take advantage of discounts offered by its suppliers for paying with cash and for paying early. BFS also helped LSI identify high-risk potential customers through complimentary credit checks, putting the company in a better position to make decisions about its clientele.
Lift Services Inc. was a client of Bibby Financial Services from 2007 until 2017 when it became self-funding. Because the factoring solution provided working capital without burdensome debt, the company was able to transition away from the relationship without the roadblocks usually experienced with other financing companies.
“Thanks to the supportive team at BFS and their back-office services, at the time we became self-funding our collections were caught up and we were able to start with a clean slate,” said LSI General Manager Bob Gross. “We couldn’t have gotten to this point, with a healthy ledger and stable cash flow, without them.”