If you ask business owners why they started their companies, many will point to a specific need they saw in the marketplace. They may invent a new or improved product that makes people’s lives easier, or provide a service in an underserved area.
The founders of Greenlock saw a need for a new type of small business lending company that would meet the very specific needs of insurance restoration contractors.
If this sounds like a very niche type of business, it is. But for insurance restoration contractors, it’s also a very important one. To understand why, you need to know a little bit about the nature of the insurance restoration industry.
Insurance restoration contractors are somewhat unique in the construction industry. They perform work on properties that have been damaged—sometimes heavily damaged—but often have to wait weeks or even months before their customer’s insurance company processes the payment for that work. In contrast, other types of general contractors typically receive a down payment and progress payments as work is performed. So, unlike most general contractors, insurance restoration contractors have to come up with the money for all of the labor and materials for each project upfront. This can be a huge hurdle, especially for contractors who are just starting out in the industry.
A company that could provide loans to insurance restoration contractors would definitely fill a need in the industry, and the founders of Greenlock knew it because they come from construction backgrounds and have intimate knowledge of the construction industry. They understand the cashflow issues faced by these types of contractors and the stress it can place on them. They also know how not having available cash can keep a business from growing.
Greenlock has created two specific types of loans for insurance restoration contractors. The first type is Accounts Receivable Financing, or AR Loans. With these types of loans, Greenlock funds a contractor’s outstanding invoices so they can in turn pay their employees, subcontractors, and suppliers the money they are owed. Greenlock also offers Project-based Loans. Project-based loans give insurance restoration contractors cash advances on their projects so they can have the funds to move them forward. With loans from Greenlock, insurance restoration contractors no longer have to wait months to get the money they’re owed for their work.
Miguel Soltero, Co-founder and CEO of Greenlock says, “Greenlock is more than just another lending company—it was born out of a personal desire to help those in the insurance restoration industry grow their businesses. As the son of a contractor and as a contractor myself, I have an intimate understanding of the unique challenges faced by contractors and want to help those in the industry get ahead by eliminating their cashflow issues.”
In addition, the team at Greenlock makes it clear that their company wants to be a true financial partner for contractors by taking a very personalized approach. While other small business lending companies look solely at a business’s credit score, Greenlock approves loans based on a company’s track record and its ability to perform.
To Greenlock, it’s about more than just creating a successful lending company—it’s a personal mission to help contractors get ahead in their own businesses.
You can learn more about Greenlock on their website: https://greenlockcapital.com/