Wheeler Financial Provides Capital Lease to Choice Canning
DEC 23, 2020 - 6:41 am
Wheeler Financial from Pitney Bowes closed a financing transaction with Choice Canning, a food producer. Headquartered in India and with a subsidiary in the U.S., Choice Canning will use the capital generated by the transaction to invest in refrigerated vehicles for transportation at its production facility in Pittston, PA.
“It only took us a couple of minutes to do the math and see the cost savings that Wheeler Financial could provide,” Alok Modani, CFO of Choice Canning, said. “We are already benefiting from the transaction.”
Modani prefers to work with financial services firms that specialize in the type of financing he is seeking.
“The bank that finances our inventory, for example, might not have the expertise to understand the details of an equipment purchase,” Modani said.
A division of Choice Trading Corporation, Choice Canning produces frozen foods at its Pittston facility, which consists of a production line and four cold storage facilities. The business relies on four refrigerated trailers and a specialized vehicle to transport goods between buildings. Prior to the contract with Pitney Bowes, Choice Canning rented these vehicles. As an alternative financial solution, Wheeler Financial provided Choice Canning with a five-year capital lease to finance the vehicles. This generates $3,000 a month in cost savings compared with the short-term rental of the assets, as well as an additional $25,000 in monthly savings, by eliminating the expense of third-party freight transportation to port. At the end of the lease, Choice Canning will own any assets, free of any lien.
“Financing equipment helps manufacturers such as Choice Canning generate savings and preserve cash flow,” Christopher Johnson, senior vice president and president of Pitney Bowes Financial Services, said. “Our century-strong legacy of supporting small- and mid-market businesses gives clients peace of mind, helping them thrive and grow with the liquidity and support they need to succeed.”
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