When Andrés Pazmiño started Evolution Global Solutions, an international distributor of computers, appliances, fitness equipment, and home electronics, in 2017, he turned to his brother, a commercial banker, with help to find business financing.
“We didn’t have much funding to start the business,” said Pazmiño. “Most of the invoices were part of the customer electronic business (which requires a lot of capital), but we didn’t have that much money initially.”
His brother directed Pazmiño to two companies that could help to find business financing for his accounts receivables and after utilizing both for a short period of time, he ended up using LSQ for the majority of his invoice factoring.
“We actually had two different factoring companies that were able to help to find business financing, but LSQ gave us the best deal,” he said.
“It was a great decision.”
For Evolution Global the ease of use of the LSQ web-based platform has been critical for the success of the program, especially considering his accounting team is based in Ecuador and the company is headquartered in Hollywood, Fla.
“With the other company, everything was by email; it was very complicated. We saw that it was going to be a problem in the long run,” said Pazmiño. “With the LSQ Dashboard, it is very easy for us.”
According to Pazmiño, the transparency and visibility that LSQ allows is helpful in keeping his bookkeeping in order. “We are able to see exactly how many days all the invoices (are open),” he said. “Then we can check we can compare the information from our QuickBooks with LSQ Dashboard so we can know exactly what is happening and can correct any mistakes.”
Initially, Evolution Global worked with LSQ to extend a $175,000 credit line for customer Regal Worldwide. Now, the credit line is $2.2 million and Evolution Global had $9 million in sales with Regal Worldwide in 2020.
Pazmiño has grown from just distributing computers to home appliances, fitness equipment, video games, and audio, photo, and video gear throughout the United States and Central and South America. For 2021, he figures the company will have approximately $16 million in invoices.
“Customer acquisition is a big part of us growing the business,” Pazmiño said. “We only work with well-known big retailers. With LSQ, we are able to give them credit, and open these accounts, which are big accounts and they’re helping us grow the business a lot.”
The COVID-19 pandemic created a strain on the consumer electronics industry in general, and the computer market especially. This was partly due to disrupted supply chains, but another key driver of the tightening market was the closure of offices and schools worldwide that meant employees and students had to have laptops to be productive or continue their education. Helping meet the demand to keep students learning is something that Pazmiño is proud of.
“South America had no inventory of those kinds of products,” he said. “We were able to get the products running. There were shortages in the U.S., but they were the first places that the big companies sent computers. Central and South America weren’t a priority. I feel we were able to help with LSQ’s support.”
Since 2017, Evolution Global has factored approximately $29 million in invoices with LSQ; a relationship that Pazmiño credits as being a part of the business’s success.
“I’m very grateful for LSQ, he said. “I started a business with $30,000.The first year we were able to invoice $1,700,000. In five years, we’ve been able to grow the business to $11 million, and now to almost $16 million. So I’m very grateful for LSQ, and I have to recommend the company to anyone because they help me a lot.
“We couldn’t do it without them.”
To learn more about how LSQ can help your business grow visit our FastTrack for Accounts Receivables Financing page.