Steve uster dating
“I realized that small businesses in Canada really have difficulty getting loans from a bank or capital to grow their business,” says Uster.
He recounts the story of a new entrepreneur who’d gone to a trade show with an interesting product that caught the eye of Walmart.By Andrew Seale At the height of the financial crisis, Steve Uster left his investment banking post on Wall Street and moved back to Canada. But it seemed whenever he met with an entrepreneur to discuss the possible sale of a business, he heard the same lament.“I kept hearing ‘when you’re evaluating my business take into consideration that I have a stack of invoices on my desk that are just not getting paid and you probably have access to more capital than I do to grow my business,'” he says.It led him to investigate how small businesses can access capital.And he found there were financing needs not being met by the larger financial services industry.“My biggest pet peeve is hearing clients turn away customers because they couldn’t get access to capital,” he adds.
“Working capital is the number one reason small businesses fail." In a sense, Fund Through is like a dating service, matching lenders – ranging from hedge funds to high net worth individuals – with small business owners who invoice through the platform; it's a type of accounts receivables financing.
The attraction for lenders is they get anywhere from a 10 to 15 per cent return on the money they offer up.
“He got an opening order for $700,000 and then he went, 'gulp!
' and had to figure out how he was going to get this funded.
He didn’t have the track record and the bank couldn’t work fast enough to be able to get him the money right away,” says Uster.
But the entrepreneur needed access to cash flow to pay off all the suppliers.