- Polyurethane recycling is a thin, profit-margin industry
- Changing consumer tastes in flooring, need to diversify business
- Management of an equipment-intensive operation
- Need to pay their suppliers immediately, but net 30 with customers
Why we use C2FO
- Manage cash flow to for operations, paying bills and payroll
- Access short-term cash flow to pay their suppliers up front
- Finance expansion of the business
“I’ve got to have good cash flow because I pay my suppliers right on the spot. C2FO is a tool we use to keep our business flowing. Just like good people, good equipment, and loyal customer relations … they are all necessary to succeed.”
PAUL REYNOLDS, OWNER, REYNOLDS URETHANE RECYCLING
Twenty-five years ago, Paul Reynolds started Reynolds Urethane Recycling as a one-man operation in a tiny 2,000-square-foot space. He started out by going through carpet store dumpsters to haul, sort and clean pounds of polyurethane.
His big break came through a meeting with Clyde Scott, a Leggett & Platt buyer. As Reynolds recalls, Scott told him “if you’re loyal to us, we’ll be loyal to you.”
As his business grew, Reynolds reinvested in his company, adding fork lifts, high-speed bailers, and people. The family-owned company, which moved into its current industrial park location two years ago, now has 24 employees, including Reynolds’ son, Jacob Reynolds, who is the general manager. There’s also a fleet of 80 trailers powered by eight semi-tractors.
The business now recycles seven million pounds of carpet per year.
When Leggett & Platt offered C2FO, Reynolds used it to control his cash flow to pay bills and payroll. Reynolds says C2FO also helps him manage immediate payment terms with his suppliers when his customers have net 30 terms.
While Reynolds has relied on C2FO only for meeting short-term cash-flow needs, he said the service has freed up additional capital to make payroll and finance expansion.
“C2FO is a tool we use to keep our business flowing,” Reynolds said. “Just like good people, good equipment, and loyal customer relations … they are all necessary to succeed.”