Storm restoration companies fill an important niche in the social structure. Without them, recovery from severe storms and other natural disasters would be nearly impossible. It’s difficult, dangerous work (40 out of every 100,000 linemen in the US die on the job each year) and the men and women who do it earn every penny of their salary.
But if you work in storm restoration, you know cash flow can be a major obstacle to growth. Utilities typically wait 90 to 120 days after completion of work to pay off your invoices. In the meantime, you still need to make payroll, keep your subcontractors happy, ensure your equipment is ready to go, and have enough cash on hand to respond to the next emergency.
It’s a delicate and difficult balancing act. But Payost is here to help. Give us a call today at (888) 5PAYOST or click the button below and submit the form to get in touch.
What is Payost?
Payost was started as a way to help storm restoration companies free themselves from the cash flow roller coaster so they can provide more effective services and plot a sustainable path to growth. The model doesn’t require you to jump through countless hoops that banks and other traditional financial institution demand. That’s because our model leverages the creditworthiness of the company holding the invoice (the utility). Not the company that generated it (you).
How it Works
Payost invoice financing is simplicity in action. Here’s how it works:
- You perform work either directly or indirectly for a utility company.
- That utility company signs off on the completed work.
- You (or the company you’re subcontracting for) are now owed payment by a AAA credit rated utility.
- You have an invoice that clearly states the payment to be made.
- You contact Payost and explain your situation.
- We verify the invoice and provide you a dashboard for uploading it.
- We provide the money you need to continue offering high-quality services.
That’s it. There’s no credit check necessary, no collateral required, no personal guarantees, no loan payments, and no waiting.
Applying for Payost only takes a few minutes. And if your scenario matches up with our model—approval is granted nearly as quickly.
Once you’ve been approved you may see the payment of your invoice as fast as the next business day. So while the competition is scaling back to survive the wait for payment, you’re scaling up and attracting the best talent. And when the next storm hits, you hit the ground running with all your assets while others scramble to put together a team.
Who Is Payost?
Every member of the Payost team has extensive experience in the fields of finance, IT architecture as well as security, and capital management. We started Payost after learning about the plight of different storm restoration outfits in the wake of Hurricane Michael.
Many of those companies expended huge amounts of working capital to respond to the disaster. Some were away from home for weeks while accruing thousands of dollars in expenses daily. When the work was completed, many returned home nearly broke where they had to endure a 3 or 4-month wait for payment.
“82% of small businesses fail because of poor cash flow management” - Jessie Hagan, US Bank
Some wound up declaring bankruptcy. While others lost valuable staff to better-financed competition. Still, others found themselves financially unable to respond to subsequent disasters. As a result, recovery for affected communities was lengthier and more difficult than it should’ve been.
We launched Payost as a way to help prevent this type of situation in the future. We were and are determined to make sure that men and women like yourself who help storm-ravaged communities recover from natural disasters don’t become the final victims of those disasters.
What makes us different from banks or other financial institutions is that we base our model on the creditworthiness of the utility holding the invoice, not the storm restoration company struggling to survive while they await payment.
It’s a simple, effective model that puts the focus where it ought to be—on helping ensure you have the resources to both respond and grow.
What are the Advantages of Payost?
If you own a storm restoration company, you know how rewarding the work can be from a personal perspective. Unfortunately, you also know only too well how troublesome it can be to maintain a steady cash flow. Mother nature is unpredictable, after all, and utilities are prone to holding invoices 90 or even 120 days before paying.
As we discussed above, this can lead to all manner of difficulties for storm restoration companies including:
- Defections of your most valuable workers
- An inability to maintain equipment
- An inability to respond effectively to subsequent disasters
Payost invoice financing is designed to target these areas of concern and to do so in a way that facilitates growth. The advantages of the Payost model are many and include:
- No credit check - Approval is based on the creditworthiness of the utility—not your credit score.
- No collateral - There’s no need to have an ax hanging over your assets ready to drop if you miss a payment.
- No monthly payments - Payost doesn’t issue business or personal loans. We pay invoices and charge a modest fee for doing so.
- Cash when you need it - You’ll be able to pay staff, pay off subcontractors to keep them in the fold, maintain your equipment, and have the working capital necessary to respond to the next crisis.
- Applying is easy - Unlike applying for a bank loan, the Payost application process can be completed in a matter of minutes.
- Approval is certain if you meet the criteria - All we need from you are verified invoices signed off by an AAA credit-rated utility or other company.
- Payment is fast - You won’t have to wait for weeks while your application is shuffled from inbox to inbox at the bank. In most cases, you’ll have your money within a day or so of approval.
- Absolute discretion - The utility company will never learn from us that you’ve applied for assistance. What happens between you and Payost stays between you and Payost.
The Payost model is both simple and effective and allows you to plan for future growth rather than fear future calamity.
"It's our ability to have an idea and go after it and make it happen. That's what, at the end of the day, defines us" - Satya Nadella
Is Payost Better Than Factoring?
With invoice factoring, the factoring company purchases your unpaid invoices and immediately pays off up to 90% of the value of the invoice. They then notify the customer that they’ve purchased the invoice and that payment should be made to them when the time comes.
Once payment is made, they deduct their fee and send any remaining balance on to you.
Sounds simple right? And it is in theory. But there’s one major drawback to factoring that is often overlooked.
When factoring companies take ownership of an invoice, this sends an unspoken message to the utility that the contractor is having financial difficulties.
Even if your company is sound, red flags will go up at the utility regarding your ability to respond effectively should they call on you again. The utility may also develop doubts about the quality of your equipment and whether you’re able to attract and keep qualified linemen.
Any of the above things could permanently sour your relationship with the utility. But they’ll never happen when you use Payost. Your business with us is completely confidential. The utility is never notified and they will go about paying off your invoice in the standard manner. This way, you get the money you need when you need it and your reputation does not take an unjustified hit.
How Does Advanced Funding Work?
Advanced funding works by providing capital against future payments.
Advanced Funding Definition
The definition of advanced funding covers personal or business loans, payday loans, advanced payments of lawsuit settlements, and more.
When it comes to storm restoration companies, advanced payment is defined as that which provides payment of outstanding invoices. As such, Payost must be considered an advanced funding company.
So what makes us a better choice than other advanced funding entities?
Is Payost Better Than Other Advanced Funding Companies?
Payost is a superior choice when compared to invoice factoring for all the reasons laid out in the section above. But the advantages of Payost don’t stop there.
Payost is not an offshoot of a subsidiary of a multinational corporation. We’re owned and operated by a team of experienced and dedicated finance professionals who identified a need and set out to address it.
Our attention isn’t fragmented among a hundred or more products and services. It’s right where it should be—on helping storm restoration professionals get the money they need as quickly as possible in order to stabilize their cash flow for a more sustainable growth. We’re specialists and we’re proud of that fact.
Using A Bank Instead Of Payost?
When a company in the past needed to raise capital in a hurry, going to a bank to secure a line of credit or a business loan used to be about the only game in town. Today, it’s a solution whose time has come and gone for many companies—thanks to Payost.
A bank will subject both you and your company to a protracted and invasive investigation. They’re also almost certain to demand collateral and force you to jump through innumerable steps to secure the money you need.
They’re also going to make you wait while your application skips through various bank inboxes like a rock on the water.
Payost, by contrast, takes a hands-off approach to you and your company.
We don’t need to know anything about you other than what invoices you have outstanding with AAA credit-rated utilities and other companies. If you can produce those, we can help you in some fashion. We’ll get you the money you need in days, not weeks wiith no monthly payments to dread down the line. It’s really as simple as that.
Who Can Use Payost?
We primarily focus on storm restoration companies and powerline companies. And for a good reason: they’re why we got into this, to begin with. We were shocked to learn what happened to many of those who answered the call in the wake of Hurricane Michael.
As a result, we set out to devise a simple way we could alleviate the hardship visited upon these important professionals due to excessive invoice processing times.
But while storm restoration companies are our primary focus, the fact is we can help any company or individual that fits our model. Therefore, if you have outstanding invoices with a utility or other AAA credit-rated company, Payost can step in and pay off those invoices, allowing your operation to move forward without interruptions.
Our goal is to be a bridge between you and payment for the work you have already performed. But what we offer are not bridge loans. Nor is it invoice factoring that could potentially paint an unflattering picture of your operation.
How Does Payost Fund?
The entire Payost invoice funding model is predicated on the fact that you have outstanding invoices with a AAA credit-rated utility or other related companies. What we do is provide you a simple way to get in touch with us and communicate your situation. If we determine your scenario fits our model, we provide you an equally simple method for uploading qualifying invoices to us.
Once we receive and verify your invoice, we fund them for you—providing you vital capital and putting a stop to the cash flow roller coaster cycle.
The utility itself is never aware of our relationship with you and they (eventually) pay off your invoice in the normal manner. Once you receive payment, we collect a modest fee for our service. If you need capital to grow your business we can provide that too at a very reasonable rate of 2.5%.
"The most important single central fact about a free market is that no exchange takes place
unless both parties benefit" - Milton Friedman
Does Payost Actually Work?
Yes. We’re tempted to leave it at that but we’ll take it a bit further.
The Payost invoice financing model does what we designed it to do. And for that, we’re both proud and happy. Proud because everyone wants their business model to prove itself in the real world and happy because we’re now able to provide the kind of cash flow to storm restoration businesses that have lacked it for so long.
The success of the Payost model lies in its shifting of the credit focus from the storm restoration company to the utility.
If your company has outstanding invoices with a AAA credit -ated utility, it provides us with the confidence we need to go forward with funding those invoices.
Unlike banks and lending institutions, we’re not phased if you missed a truck payment because you spent all your working capital responding to a recent storm event. All we care about is who is holding your invoice. If they’re proven to be dependable, we can help you.
Are There Downsides to Using Payost?
The main “downside” to Payost is that some companies will not qualify. This is to be expected though because no person, organization or idea is going to have 100% appeal or applicability. Aside from that, some companies who may be performing work for qualified AAA credit-rated utilities may not be able to submit their invoices before they need for capital. This can happen sometimes when a company is on the road responding to a distant emergency.
Their daily expenses may drain their current accounts and we may not be able to get them the money they need before their well runs dry simply because we need the invoice to do so.
Where Can I Apply for Payost?
To get the ball rolling with Payost, simply go the “Apply Now” page and follow the step by step instructions. Before you do make sure you have the following at your disposal:
- Your company name
- The name of the utility or if you’re a subcontractor, the name of the GC who billed the utility for your service
- Confirmation that the work has been signed off for in the field
- The amount of the invoice (doesn’t need to equal the requested amount)
In addition, if you anticipate or have committed to doing more storm restoration work in the near future, please let us know where and when.
Bottom Line: Should you Try Payost?
Payost is without a doubt the easiest, fastest, most dependable choice for invoice financing. Better than:
- Banks - Banks will perform a credit check, make you endure a painfully slow approval process and take valuable assets hostage to act as collateral. We won’t—period.
- Early payment financing (EPF) - The size of the fee you pay with EPF will depend at least in part on your personal credit history. With Payost, your credit history is not part of the equation.
- Accounts receivable financing (ARF) - Accounts receivable financing such as asset-based lending requires you offer up valuable assets as collateral. Something you’ll never have to do with Payost.
So, should you try Payost?
If you’re a storm restoration company with outstanding invoices that are being held by AAA credit-rated utilities and you’re in need of cash, then yes. Absolutely. Payost will help bring order to your cash flow chaos, enable you to plot a course to sustainable growth and ensure you’re ready to answer the call the next time nature runs amok.