Performance Repair Services
The perfect storm
Even the most business-savvy entrepreneurs face challenges when dealing with the volatile energy sector. But for those without a business background, navigating this uncertain terrain can be particularly stressful.
That’s a lesson Brett Haskill learned the hard way when his automotive repair company, Performance Repair Services, started fixing diesel engines for power plants. With over 20 years in business, the family-owned company had a wealth of expertise servicing a vast array of engines, generators, pumps and more. As a result, its new service offering was well-received. Unfortunately, given the energy sector’s uncertainty, the company never knew when, or if, its customers would pay their invoices—an issue that became increasingly severe when the oil and gas sector crashed in 2014, impacting energy-related businesses like Performance Repair Services.
To add insult to injury, not only was Performance Repair Services facing severe cash flow issues resulting from inconsistent accounts receivables (AR), but Haskill was also forced to unexpectedly buy out his business partner less than two years after the two acquired a new company. The timing couldn’t be worse, and—as a result—by the summer of 2017, the company found itself in severe financial trouble.
“I didn’t have enough capital to operate my business. The projected growth of my business was sidelined and I owed the bank over one million dollars, so they weren’t remotely interested in helping me.”
~ Brett Haskill, President, Performance Repair Services
Just before bankruptcy started looking like the only viable option, however, Haskill’s local banker recommended he contact Liquid Capital.
A much-needed lifeline
Haskill had employed the services of a factoring company years before, with—for lack of a better word—terrible results. So, when his banker suggested he see if Liquid Capital could help save his struggling business, Haskill was understandably skeptical. It wasn’t until two other people suggested he talk to the company that he finally decided to pick up the phone.
“Liquid Capital seemed like a perfect fit right from the beginning. Not only did they offer the best price structure, but they were genuinely eager to work with me at a time when other lenders were terrified of the energy sector. It was a slam dunk,” Haskill explains.
He also liked the idea that Liquid Capital offered credit insurance, so if one of his clients couldn’t pay their bill, he would be covered to receive up to 90 percent of the cost of the invoice back. This was a particular benefit for Performance Repair Services, which had suffered approximately $15,000 in losses due to bad accounts in the two years prior.
Eager to turn the tide, Performance Repair Services entered a factoring arrangement with Liquid Capital, selling all of its AR over to the company. It then used the cash to finance its labour costs, expand its inventory and pay back-taxes. The free-flowing capital essentially allowed Performance Repair Services to get back on track—and return to its original growth trajectory.
“I used to hate doing invoicing because I would send off all my invoices and just cross my fingers that they’d get paid. Now, my invoices get paid the day I issue them—I’m in control of my cash flow and able to focus more on growing my business.”
~ Brett Haskill, President, Performance Repair Services
Smooth sailing
Since partnering with Liquid Capital last summer, Performance Repair Services has seen a significant increase in revenue—Liquid Capital is now funding twice the amount it did a few short months ago, and invoices often come in multiple times a week. With the energy sector emerging from its downturn, Haskill believes this is only the beginning.
“It’s honestly starting to look better, finally. A lot of O&G companies are changing their portfolios to invest in clean energy and power generation right now, which is benefiting our business,” Haskill says.
Having more control over its AR has allowed the company to pursue much bigger projects than before, safe in the knowledge that it has the capital to cover the labour, parts and other costs required to fulfill them. As a result, Performance Repair Services is growing at a fast clip—and Haskill’s passion for it has been renewed.
“Liquid Capital saved my company from bankruptcy by putting me in a better financial position to pursue new opportunities. I recently started working with a US company, selling a new generation system that could potentially grow my business exponentially in the next two years,” Haskill says. “Already, we’re fulfilling a big service agreement on a $1.5 million gross sale to a new client. In fact, we’re acquiring new clients on a fairly regular basis now.”
With the stress of invoicing a distant memory, Performance Repair Services anticipates maintaining its relationship with Liquid Capital for some time to come.
“My experience makes it very clear that Liquid Capital is willing to work with real, everyday people that may be struggling with their business but still have the ambition to succeed. Thanks to them, my company is now on cruise control.”
~ Brett Haskill, President, Performance Repair Services
