Idea Financial damaged our Business
We are a transportation contractor for our State Medicaid program. We have Idea Financial for emergency funds. We have a balance of $59,000 on a $129,000 credit line. The company that handles processing Medicaid payments suffered a software glitch that delayed our regularly scheduled payment by one week. This payment represents 91% of our operating revenue. Without Idea Financial, we would have to shut down until the Medicaid program fixed its error and issued payment. We believed that if ever the government check was delayed for reasons beyond our control, our credit line from Idea Financial would keep us afloat until the Medicaid program caught up. It is essential we keep moving because most of our patients receive dialysis treatments. When the error was discovered, it was Thanksgiving and Idea Financial was closed for the holidays. We contacted our vendors and assured them our credit line could keep the show going until the error was fixed. We requested $40,000 to pay for fuel and balance our account until our double Medicaid payment ($98,000) was received in 4 days. Idea financial received my draw request on Friday. They rejected the draw request on Monday. I explained our dire situation and demonstrated to the Idea Financial agent our consistent weekly Medicaid payments every Thursday for the last 5 years. The agent then informed me he would take it to the higher ups and explain the situation. Finally late day Monday, Idea Financial explained that after further review, Idea had no interest in allowing us to withdraw funds from our credit line. They informed me that my draw request was denied because they will not fund a negative account. I pleaded for help, explained the situation, and even demonstrated that we could repay the amount in 4 days. We have never missed a payment to Idea Financial. As a result of our safety net not really being a safety net, we did in fact have to close. The damage to our business is in the 10’s of thousands, not to mention the loss of revenue and damage to our reputation. We are not about to close permanently. We have increased sales by 30% every year for the last 5 years. Dun & Bradstreet scores (Paydex 80, Overall Assessment Stable, Likelihood of Continued Operations, Low Potential for Late Payments) are good to excellent. My personal credit score is 759. WHY WOULD YOU NOT ASSIST US???? In 5 and ½ years in business, we have never closed once. We have now increased our monthly payment to Idea Financial to conclude our relationship ASAP. Our company needs partners that we can rely on, and in a terrible moment for 32 employees and 1600 customers, we failed them. We won’t make the same mistake twice. Once they are paid in full, our Company will get a line of credit that is available for the worst case scenario. I do not require a response from Idea Financial. You made your position clear, and I understand your explanation. I do not agree with it, I simply wish to help other small business owners avoid my mistake. Thank You *Update: As of 01/16/2024, our credit line with Idea Financial has been paid in full and the account closed per my request.