Freight-Base was ready to develop an online system that would give them an edge over their competitors, but they needed capital quickly to launch it.
When the owner was turned away by a local bank, IOU Financial’s fast and simple process became his go-to lending resource, both for his business and his charitable foundation.
Freight-Base, which specializes in international logistics, had been in business for thirty years when owner Jack Groat was ready to make his big idea a reality. He had hired a team to create a worldwide GPS tracking system that would allow customers to track every step of the shipping process, view photos of their freight, and get detailed location information. When Jack approached the local bank to get the capital he needed for additional research and developing the system’s website, he was turned away despite his business’s long tenure.
He then pursued a home equity loan. When he saw that the paperwork required him to disclose extensive information about his business and his charities, he decided that wasn’t the right route for him either. IOU caught his eye and he started investigating what alternative lending could do for him.
Loan Logistics Made Simple
Jack decided to go with IOU Financial, and the entire process, from application to receiving funding, was only 48 hours.
Freight-Base quickly put their $50,000 loan to work to enhance trackmypackage.com, the online portal for their worldwide GPS tracking system. They are also using the loan to upgrade their online quoting system so it can provide an accurate, instant, door-to-door quote. The system gives Freight-Base an edge in the market in two different ways: most large logistics companies don’t offer door-to-door quotes and have a waiting period for quote estimates. With these upgrades, Freight-Base has an edge over its larger competition. Jack said the product is in process of gradually expanding so that it covers more countries.
“Even though we’ve been in business a long time, it’s nice to be super excited about something that no one else has. You’re competing against the monsters of the industry. It’s a great feeling you have inside that you’re doing something that helps the company and helps the employees.”
Cash Flow to Help Cowboys and Cowgirls
Jack was so pleased with his experience that he returned to IOU when he needed additional cash flow for his charity, the Little Boots Foundation. The foundation holds a family rodeo and vendor show each year that offers fun, non-competitive cowboy and cowgirl activities for children. The challenge was the large, upfront cost of paying all the vendors for the event before they had their proceeds in hand.
“In the past, I took a loan from my company or a personal loan to cover the cost of the festival,” he said.
With IOU, he applied for a loan in the morning and received the funds in the afternoon. By having the cash flow to pay in full, he has been able to negotiate better prices with the vendors.
“It’s so convenient. I can’t tell you how pleased I am,” he said. “This is the first year in nine years that the entire festival is already paid off, and now we are just able to push the promotion and really enjoy the festival.”
Fast Capital with Clear Terms
Not only was IOU Financial’s process fast, but Jack also said the terms were simple and clear.
“It’s a one or two page sheet,” he said. “It tells you exactly what they are going to do, how many payments there are, and there’s no penalty for prepayment.”
Jack chose to use IOU’s daily withdrawal option to pay back his loan, and he plans to take advantage of not having prepayment penalties and pay off the cost of the festival once the proceeds are in.
With an easy experience from beginning to end, Jack said IOU is a go-to resource for business owners who are on tight time lines for their projects.
“It’s a very serious decision for someone to take out a large loan. When you’ve made the decision and you step over the line and take the loan, if you’re under a time constraint or anything like that, I would recommend IOU.”