Services for a Growing Business
Headquartered in the Atlanta suburb of Roswell, Ga., Falcon Solutions supplies high-tech and electronic components to original equipment and contract manufacturers. Founded in January 2001, Falcon is a small business success story, with projected 2003 sales nearly tripling those of 2001.

A UPS shipping customer from the start, Falcon takes advantage of a broad range of UPS’s solutions to optimize its working capital, meet and exceed customer requirements, implement low risk growth strategies, and prosper in a difficult market for high-tech and electronic services.

Superior products, professional know-how and a rock-solid commitment to customers have driven Falcon’s growth. But it relies on UPS Capital to help maximize its use of working capital.

"We are a young, relatively small firm that has grown rapidly. As we’ve expanded, we’ve been mindful of the need for a financial partner who understands our business and develops strategies to foster our current growth and position us for future sustainable gains," said Doug Braun, Falcon’s president.

Falcon’s financial relationship with UPS Capital began in late 2001, when the company began using C.O.D. Automatic to accelerate its cash flow. In the past, payments would take many days or weeks to clear Falcon’s bank account. With C.O.D. Automatic, funds were deposited automatically in its bank account and available within two to three days after confirmed product deliveries. The use of C.O.D. Automatic helped increase Falcon’s cash flow and its flow of goods to customers.

Solutions to Grow On
Knowing UPS Capital offered other financial solutions, Falcon obtained a credit facility secured by the value of its receivables. This marked a milestone for Falcon, which previously was self-financing. As the company’s business continues to expand, UPS Capital has matched its growth with an increased line of credit. While Falcon used the additional financing to help increase sales, the UPS Capital business development representative suggested that Falcon consider credit insurance to protect the value of its open account receivables against default or non-payment, as well as screen prospective customers to identify potential credit risks.

"Our experience with UPS Capital has been nothing short of phenomenal," said Braun. "Our cash flow has markedly improved, our open account receivables are fully insured, we’ve increased our capacity to borrow, we can offer our accounts very attractive credit terms because UPS Capital and UPS Capital [Insurance Agency, Inc.] manage our financing and insurance needs, and we avoid bad debt by flagging potential problem accounts before we engage them. The credit insurance program handles all the due diligence for us, so we can identify potential credit risks without having to spend the time and resources to do our own research."

Braun added that UPS Capital’s capabilities, when integrated with UPS shipping, logistics and information solutions, deliver a compelling value proposition to small to mid-size businesses.

"UPS has offered us value, innovation and convenience across the board," he said. "UPS Capital took the time to understand our business and to build customized financial solutions that traditional lenders couldn’t or wouldn’t deliver. They weren’t daunted by the fact that we don’t yet have a 10-year track record. They saw the value of our business model through the eyes of the transport relationship, and they had confidence in our ability to perform."