November, 2024 - Lendica Resource Center

Managing cash flow and providing easy payment options are critical for suppliers like SolarTek, who serve fast-growing industries such as solar installation. Recently, SolarTek made the decision to partner with Lendica for its customers Accounts Payable solutions, transitioning away from BlueTape.

The result? A streamlined experience that delivers more flexibility, support, and growth potential for SolarTek and its customers, such as Custom Pro, a solar installation leader.

Here’s how SolarTek is leveraging Lendica’s solutions to create a better financing ecosystem for their customers and why this change is helping them optimize their business.

Challenges with Financing for Solar Suppliers

SolarTek, like many suppliers, needed a financing partner that could address key pain points:

Efficient Onboarding: SolarTek’s customers often operate on tight timelines and need fast, frictionless access to credit to keep projects moving. It can take weeks to onboard new customers with countless emails and contracts.
Wider Coverage: The diversity of their customer base meant SolarTek required a solution offering flexible terms for established companies and new players alike. Many SolarTek customers struggle to get access to better payment solutions.
Scary Terms: Acting as a guarantor for customer credit lines increased SolarTek’s financial exposure—something they wanted to avoid.

While BlueTape provided a starting point, it fell short in several areas. Lendica stepped in with a solution built specifically to address these needs.

Delay vendor payments with PayLater

Learn how you can pay your vendors early, enjoy early-pay discounts and pay back up to 90 days later.

Learn more →

Why SolarTek Switched to Lendica

1. Frictionless Customer Onboarding

SolarTek’s customers experienced a dramatic improvement in the onboarding process with Lendica. The platform offers a user-friendly interface and fast, nearly instant approvals, allowing customers to apply for payment plans with a two-minute application by connecting bank and accounting or ERP data. This seamless experience encourages more customers to use financing, helping SolarTek drive additional sales.

2. Risk-Based Pricing for Every Customer

One of the standout features of Lendica is its ability to offer risk-based pricing. Larger customers benefit from bank-like rates and extended payment terms, while newer or smaller businesses still receive tailored offers without the fear of rejection. This inclusivity means SolarTek can cater to a broader range of customers, strengthening relationships and expanding their market.

3. No Guarantor Requirement

Since Lendica is able to more accurately price risk and assess customer relationship, SolarTek no longer has to act as the guarantor for their customers’ financing. This eliminates a significant financial risk and frees SolarTek to focus on growing their business without taking on unnecessary liabilities.

SolarTek is a leading provider of solar equipment throughout the US.

”Lendica has been one of the best decisions for our business and our customers. Their quick onboarding process and flexible credit options allow our customers to access financing quickly, while we avoid the financial risks of acting as a guarantor. Direct communication and quick responses from their customer support teams make Lendica feel like a true partner.”

Uros Ceglaj, CEO of SolarTek

Custom Pro: A Happy, Converted Customer from BlueTape

Custom Pro, a solar installation company and one of SolarTek’s key customers, is already seeing the impact of the switch to Lendica from BlueTape.

Custom Pro has used Bluetape for a year before applying to Lendica. In that time, they had several challenges and were delighted to move their factoring line to Lendica’s PayLater.

Here’s how they’re leveraging their line of credit with Lendica to optimize operations:

CustomPro is a leading solar and roofing company in Texas.

1. Financing Across Vendors

Lendica allows Custom Pro to use their line of credit with multiple vendors without the friction of onboarding. Instead of asking a new vendor to onboard, an important step with BlueTape, Lendica’s able to seamlessly auto-approve new relationships. This flexibility simplifies their purchasing process and helps them maintain cash flow across the entire project.

2. Scalable Credit Line

Custom Pro appreciates how their line of credit with Lendica grows as they continue to use it responsibly. Unlike other lenders, Lendica does not impose limits on credit lines, allowing Custom Pro to scale their financing to levels larger than what their previous lender offered. This flexibility empowers them to take on bigger projects with confidence, knowing they have the financial tools to support their growth.

3. Dedicated Customer Support

Lendica’s team provides hands-on support to Custom Pro, ensuring they have the guidance and resources they need. This exceptional service builds trust and makes financing a seamless part of their business strategy.

”Lendica has made financing simple and effective for our business. The flexibility to grow our credit line as we use it has been a huge advantage, and their team is always available to provide support. Lendica isn’t just a financing provider—they’re a valuable partner in helping us achieve our goals.”

Drew Jansky, CEO of Custom Pro

A Partnership Built for Growth

For SolarTek, the switch from BlueTape to Lendica wasn’t just about finding a better financing partner—it was about creating a better experience for their customers. With Lendica, SolarTek is driving innovation in customer financing, offering solutions that are simple, scalable, and designed to meet the diverse needs of their clients.

Are you ready to optimize your supply chain financing? Learn how Lendica can help you provide seamless, scalable solutions for your customers.

Are you ready to optimize your supply chain?

We’re helping businesses across the country upgrade their financing options.

Apply Now →

Executive Summary

Packaging companies buy materials first and get paid later. That gap squeezes cash. Lendica offers two simple working capital products to help:

PayLater: Lendica pays your supplier bill now. You pay Lendica back on a schedule up to 90 days (many teams use ~6 weekly payments ≈45 days).
FundNow: Lendica advances 70%–90% of an approved customer invoice. You repay when your customer pays (or by the agreed date).

These tools shorten the cash gap, cut rush costs, and help you say “yes” to larger or faster orders.

Common Cash Problems in Packaging

Payment timing: Brands and retailers often pay in 30–90 days. Suppliers want faster payment.
Big material buys: Paperboard, corrugate, films, inks, and plates are bought in bulk and can swing in price.
Project spikes: Launches and promos need tooling and labor before you see cash.
Expedites: When cash is tight, you buy smaller amounts and ship fast, both hurt margin.

Where Lendica helps: at the supplier bill and at the receivable.

Packaging Company Profiles

Folding Carton Converter:

Uses PayLater for sheets and inks ($50k–$140k). Often batches multiple invoices for one launch. Plans usually finish in ~30–45 days (≈3–6 weeks); up to 90 days available.

Co-Packer for Brands:

Uses FundNow to advance 70%–90% of invoices to national retailers. Typical use is ~30–45 days (≈3–6 weeks); up to 90 days available to cover payroll and components.

Corrugated & Displays Plant:

Mixes both: PayLater to pre-buy materials and FundNow on big outbound invoices for seasonal programs.

Working Capital Solutions for Packaging

PayLater (Supplier-Side)

What it does: Lendica pays your vendor invoice now. You repay Lendica on a schedule up to 90 days (many teams choose ~6 weekly payments ≈45 days).
Good for: buying early to lock allocation or price, capturing 2/10 supplier discounts, aligning material arrivals with press time.
Pricing: varies by credit and invoice. Lendica markets rates starting around ~1% for 30 days; examples in this doc sometimes use ~1.8% over ~45 days to show the math (illustrative, not quotes).

Delay supplier payments with PayLater

Learn how you can pay your suppliers early, enjoy early-pay discounts and pay back up to 90 days later.

Learn more →

FundNow (Receivable-Side)

What it does: Get 70%–90% of an approved customer invoice right away.
Repayment: when your customer pays, or by the agreed term (often up to 90 days).
Good for: covering payroll and COGS while waiting on retailers, handling back-to-back launches.
Pricing: varies by credit and AR quality; marketed from ~1% per 30 days. Our example below uses a ~2.5% total cost over a few weeks to illustrate the math (not a quote).

Speed up cash collection with FundNow

Learn how you can get paid upfront on your sales invoices.

Learn more →

Typical operating pattern

Batching: Group invoices and receivables by project or PO.
Deal sizes: Often $50k–$150k; smaller tickets for plates or pilot runs.
Cycle time: Many deals wrap in ~30–45 days (≈3–6 weeks); up to 90 days are available.

Outcomes Packaging Businesses Achieve by Using Working Capital

On-time production: Pre-buys reduce changeovers, idle time, and expedites.
Faster cash conversion cycle: Pay suppliers early (often with a discount) and pull cash forward on AR.
More capacity to sell: Take bigger or overlapping orders without waiting for old invoices to clear.

(Exact results vary by business, credit, customers, and suppliers.)

Simple ROI Examples (Illustrative)

A) PayLater for Substrates + Inks

Invoice: $100,000
Illustrative fee: ~1.8% over ~45 days → $1,800
Early-pay discount captured: 2% → $2,000
Net effect: +$200 before any price-increase savings.
Plus: if pre-buying also avoids a 1.5% price hike, that’s another $1,500 kept.

B) FundNow on a Retailer Invoice

Receivable: $150,000 (Net-60)
Advance at 90%: $135,000 on day one
Illustrative total cost over a few weeks: ~2.5% → $3,750
Use of cash: keep crews and machines running for a second promo run; avoid expedites and delays.
Why it pencils: the cost is usually less than the margin saved and the rush fees avoided.

(These are examples to show the math, not price quotes. Actual terms depend on your business.)

When to Use Which Working Capital Product

Use PayLater to pre-buy materials, capture 2/10 discounts, or secure price/volume before a busy season.
Use FundNow to get cash against AR when customers pay slow or when you’re scaling fast.
Use both when a big PO needs upfront materials and you’ll wait for payment later.

Quick Working Capital Start Plan

Week 0–1: Connect AP/AR. Approve core suppliers and top customers.
Week 1: Try PayLater on two POs ($60k and $85k). Aim for a 2/10 discount. Set schedules that match the job (~30–45 days, up to 90 available).
Weeks 2–5: Run the launch. Use FundNow on two outbound invoices (~$120k and $150k) at 70%–90% advance to smooth payroll and buys.
Week 6: Customer pays. FundNow repays. PayLater finishes. Review results and scale.

Conclusion

Invoice-tied financing is a simple lever for day-to-day cash. PayLater helps you buy what you need now and repay up to 90 days later (many teams use ~6 weekly payments ≈45 days). FundNow turns approved invoices into 70%–90% cash today. Used together, they shorten your cash conversion cycle by weeks, protect margin with early-pay and pre-buys, and free up capacity to take bigger or faster orders, without waiting for customers to pay.

Accelerate growth with working capital

Learn how Lendica’s packaging industry solutions can help you manage your cash flow.

Learn more →