Company: Cellular 1 Communications

Owner: Jamie Stitt

Founded: Aug. 1, 2007

Status: In the first round of using factoring

Company Profile: Cellular 1 Communications supports AT&T Mobility by providing service for cellular provider

Experience: "I worked as a project manager for Cingular, and I knew I was going to be out on my own," says Stitt. "But I was sponsored to be a local vendor for AT&T, which was a great thing."

He says he had enough personal funds to get his company started but knew that in order to accept all the jobs he was offered and cover payroll and benefits, he was going to need cash flow. But as a startup, his company wasn't bankable and couldn't receive a line of credit. Private funding and factoring were his two best options.

"I knew what I needed to do. I just wanted to find the right person and organization."

That's when Stitt's attorney, Laird Hetlage of Gillespie, Hetlage and Coughlin LLC in Clayton, recommended that he contact Angela Hindle, owner of Liquid Capital, and look into factoring to help with cash flow. Stitt met with Hindle and explained what he does and why he needed money.

"After several months I had used up my reserves, and I went back to Angela," says Stitt. "She put things into play, and within two days I had cash flow, which not everyone can do so quickly."

While there is a cost involved in factoring, Stitt says it made perfect sense for him. It can take as long as 90 days to receive payments from AT&T, and there are capital requirements that come with accepting jobs and paying for necessary equipment while keeping up with payroll for 10 employees.

"They help you collect, and factoring avoids making financing a full-time job so that I can concentrate on my business," says Stitt.

Advice: "The No. 1 thing is to have your finances in line as quickly as possible and make contacts," says Stitt. "It is not necessarily an infinite relationship, but it is necessary to have access to cash, especially with employees. You need to have the ability to accept and fund the work that is being offered and still be able to pay your people when the time comes. Having the key people—an accountant, attorney and someone like Angela—allows the business owner to focus on their business."

Company: Wandering Sage Bookstore and More LLC

Owner: Dave Barlow

Founded: 2007

Status: In the first round of investment

Company Profile: Wandering Sage Bookstore and More LLC is a publishing, retail and distribution company of rare and fantasy books and comics and related collectible weapons, jewelry and apparel. The new technology department of Wandering Sage is a store for serious gamers; it provides an environment for them to play in and escape from reality. The store also sells games and computer equipment.

Experience: When Barlow started Wandering Sage, he didn't have any investors, and while he was trying to get his company off the ground, he bankrupted himself to keep it open.

"There was no training or warning saying that you needed to set up your company so that it was not linked to your personal credit," says Barlow. "I thought that after three or four years the store would be its own entity. So I worked with an attorney to get everything straightened out."

Then Barlow's friend John approached him with an idea for a store for serious gamers. Together they developed the concept of a store with high-end computers that clients could play on and equipment and games they could buy. Barlow already had a strong customer base, so he offered to make the technology department a branch of Wandering Sage with John as president.

The two found a storefront in New Town at St. Charles, and the leasers offered to finance the completion of the interior of the store.

"Finding capital is not easy, especially in this economy," says Barlow. "But if you have good business ethics and are a good person all around, things roll around to you. With Wandering Sage, we are already established and have a strong customer base. The leasers could see that we aren't a fly-by-night business."

Barlow plans to have the store completed and open by late May or early June.

Advice: "I may be going against what most financial gurus say, but I think that it is important not to sound too eager or needy," says Barlow. "Investors don't want to think that you will charge in too fast and lose control."

"It can be a slow process, but don't give up," Barlow says. "Our motto is '"Always dare to dream."' Networking is key. Someone always knows someone else that you don't know in the business industry. Join different venues, find a mentor, and make your business contacts and partners your friends. Friends will be more likely to help you in the end."