Peraza Underground Resolved its Cash Flow Challenges and Increased Revenue by 150 Percent

Peraza Underground

Breaking into the utility construction sector in 2017, Oscar Peraza’s dreams for Peraza Underground were much bigger than its size. Based in North Carolina, and with just ten employees, the company’s main asset was grit. Still, Peraza managed to close a contract with one of North America’s largest specialty contracting, engineering, and construction firms. The work was solid, and the client was dependable, but Peraza couldn’t shake the feeling that the future of his company was uncertain.

Waiting Up to 90 Days for Payment Created Payroll and Payables Strain

“I would have had to close the business if I couldn’t figure out a way to free up my cash flow,” Peraza says, reflecting on the early days of his company.

Despite strong demand for his cable installation and on-site time-and-equipment services, and his net-45 payment terms, it still took 60 to 90 days for his client to pay. His problem was a common one for the industry. It wasn’t just a matter of having someone sign a check. The client required work orders, daily form reports (DFRs) for work in progress, and a final invoice, all of which had to undergo a multi-stage validation process with the client before payment could even be scheduled.

And as those DFRs collected dust, Peraza’s payables stacked up. “I had employees and bills that needed to get paid,” Peraza explains. “There’s nothing more urgent than that.”

Through Factoring with Viva, Peraza Underground Resolved its Cash Flow Challenges and Increased Revenue by 150 Percent

Peraza wasn’t sure what the right path was when he began his search for solutions, but says he instantly felt at ease with Viva Capital, and that has been maintained with each person he connects with, from his initial contact to his dedicated account manager today.

The application process moved swiftly, and thanks to Peraza’s client’s strong payment history, it was approved almost instantly. Now, instead of waiting 90 days for payment from his client, Peraza uses specialized invoice factoring for service providers. Each time he completes work and generates an invoice, he sends the documents to Viva Capital and qualifies for same-day payment.

A year into his factoring agreement, Peraza couldn’t be happier. “Not having to wait to get paid… my entire life has changed, actually,” he says. “The company has grown a lot. I have a bigger crew, more equipment, and doing business with Viva Capital has helped in every way possible.”

But Peraza didn’t just grow his business “a lot.” In just one year, his monthly sales have risen by a baseline of150 percent, with some months showing over a 274 percent increase.

When asked if he had any insights for other business owners in his situation, his advice was simple: “Don’t think about it. Just do it, especially if you are looking at the long-term benefits. It will help your business to have better cash flow and payroll for your team.”

Explore Invoice Factoring for Your Services Company

Winning big contracts is only half the battle for many small businesses, particularly when those contracts come with lengthy payment delays. If you serve companies with strong payment histories but can’t wait weeks or months for your invoices to clear, factoring can streamline your cash flow and give you the working capital you need to grow. To learn more or get started, request a complimentary rate quote.