Case Study: A Small Manufacturing Company located in the MidWest
Working capital loans are a great way to get much needed cash quickly and without much fuss. The feedback we have received from clients has been very positive and we wanted to take to take the opportunity to share some of their experiences with working capital loans and with us.
The following is based on a conversation we had with a client of ours that we recently helped. He contacted us after the fact to express his gratitude in our ability to provide him with funding in response to an unexpected, albeit positive event.
The Small Business
Tom is the owner of a small manufacturing company in the Midwest that makes specialized sprinkler heads for the agricultural industry. His sprinklers are unique in that they spread water over a greater area in a more efficient manner meaning that less water is needed for the same results. This efficiency is a result of design and construction of the head.
The benefit to the farmer is that they obtain the same results with less water resulting in cost savings to the farmer. Since water is such a scarce resource in the Western part of the United, this is especially important.
Sudden and Rapid Growth
Until about eight weeks ago, Tom’s marketing consisted of trade shows and word of mouth. This was sufficient to keep everyone on his staff busy as well as make a comfortable living for himself and his family.
Four months ago, Tom ventured online with a professionally designed ecommerce website that enables people to order his company’s sprinkler heads online. A press release was issued upon completion of the website and this was sufficient to attract the attention of several bloggers. Eight weeks later, his sprinkler heads was the subject of discussion in just a few agricultural blogs. This was sufficient to significantly increase expected traffic to the site. With the increase in traffic came an increase in order, more orders than they were prepared for.
The Downside of Growth
While this onslaught of activity is most welcome, it had a downside. The sudden and increasing growth in orders required more resources than Tom could afford to pay for from internal funds.
Because of the sheer pace of orders coming in online, Tom did not have the luxury of going through the traditional business loan application process that can normally take weeks to complete. He also did not have the time or desire to go through the loan application process. Tom needed money now. The pace of orders was increasing.
Solving a Problem
Tom contacted us at the urging of Brad, his golfing buddy and a current client of ours. We were able to start the application process right then and there for Tom. In all, we were able to approve Tom for the money he needed within 24 hours of when he first called us. All signatures and necessary documentation was completed in another 24 hours and Tom received the funds into his bank account 24 hours later.
Tom expressed to us that he was very happy to have the funds in hand to fill his online orders within three days. He was impressed with how seamless the entire application was and he did not have to set aside an entire day to complete the loan application as he would have had to do if dealing with the neighborhood bank.
Tom was able to receive the funds he needed within 3 days time of contacting us. The amount needed was sufficient to fund materials, new equipment, and additional labor to help out. He has been able to find the onslaught of orders that are still continuing to grow.
We love helping companies to grow their business and we love hearing success stories.