CHALLENGE
Slow-paying clients led to inventory shortages and repair delays.
SOLUTION
Fundbox line of credit enabled investments in more inventory and new vehicles.
RESULTS
Slashed job-completion time by 56% and grew new business by 15%.
When reinvesting revenue wasn’t enough to grow at the rate he wanted, Scott Bullock, a Southern Utah-based Mr. Appliance franchisee, turned to Fundbox to invest in inventory that allowed him to improve the rate at which he could serve customers and grow his business.
Scott Bullock is a serial entrepreneur, and when he moved to Southern Utah and was searching for his next venture, he found a Mr. Appliance franchise and bought it. As the name suggests, Mr. Appliance franchisees handle on-location appliance repairs for residential and commercial properties.
Challenge
After getting the business off the ground, he felt like he wasn’t growing fast enough.
Business was okay. I just wasn’t able to make the kind of inventory investments I knew I had to make.
Scott Bullock, Owner/Franchisee
Field service businesses like Mr. Appliance strive to resolve a customer’s issue in one site visit. The only way they can do this is by keeping an inventory of pa s on-hand in their vans. If they don’t have a part to fix an appliance, they have to order it and return for a second visit. This extra time costs money because it means while they’re serving old jobs they can’t take on new ones.
The reason he couldn’t stock the parts inventory was cash flow. “My commercial clients are great, but often they don’t pay me for 30 or 60 days. Some of my largest clients are the big casinos in Las Vegas and they don’t pay quickly.” The lack of cash flow meant that Bullock was only completing 17% of his jobs in one visit, compared with the industry benchmark of 40%.
Solution
Around that time, Fundbox called. Fundbox is a partner of ProTradeNet, the platform that serves franchise businesses like Mr. Appliance with tools and exclusive o ffers to help them run smoothly and grow.
They just called and asked if I wanted to set up an account. I said yes and that day I was all set up. I only had to fill out a couple of forms. It wasn’t hard at all.
Scott Bullock, Owner/Franchisee
As soon as he was approved for a Fundbox line of credit, he started using it to invest in inventory and new vans.
Results
Within three months of using Fundbox, Bullock saw returns. He was able to boost his ability to complete client jobs to 40%, which has meant he’s been able to take on 15% more jobs than before. He now uses Fundbox about once a month. “Cash flow is key," he says. "Sometimes you run out. Fundbox is there to save the day.”