The CEO of a southeast-based equipment finance brokerage operation had been running his business successfully for years. His company was known for its excellent service and strong vendor relationships, but growth had plateaued, and economic headwinds whipped volume levels around wildly at times. He knew there was more potential, but he wasn’t sure how to tap into it.
The breakthrough came when the CEO decided to adopt a total “small business lending mindset.” He realized that many of his vendor clients had other capital needs beyond equipment finance. By broadening his service offerings to include working capital, commercial real estate and SBA lending specialties, he was able to offer more comprehensive solutions to his clients.
With this new approach, the CEO trained his staff to engage clients in conversations about their overall capital needs. Instead of just focusing on equipment financing, they began to ask, “What other capital needs can we help you solve?” This simple question opened a world of opportunities.
Working Capital Deals
1. Retail Business Expansion:
- Customer: A small chain of retail stores
- Need: The customer needed additional inventory for the holiday season but was short on cash.
- Solution: The brokerage arranged a working capital loan to purchase the inventory, allowing the retailer to meet increased demand and significantly boost sales during peak season.
2. Manufacturing Facility Upgrade:
- Customer: A local manufacturing company
- Need: The customer needed funds to upgrade their production line to meet a large new order.
- Solution: By providing a working capital loan, the brokerage enabled the manufacturer to modernize their equipment, increase production capacity and secure a lucrative contract.
SBA Real Estate Deals
1. Office Space Acquisition:
- Customer: A growing tech startup
- Need: The startup was rapidly expanding and needed a larger office space.
- Solution: The brokerage facilitated an SBA 504 loan to finance the purchase of a new office building. The favorable terms of the SBA loan helped the startup manage its cash flow while securing a prime location for its operations.
2. Medical Practice Expansion:
- Customer: A medical practice looking to expand
- Need: The practice wanted to open a second location to serve a growing patient base.
- Solution: The brokerage arranged an SBA 504 loan for the acquisition and renovation of a new facility. This expansion enabled the practice to increase patient capacity and revenue.
The results were remarkable. By expanding into new lending areas, the company saw significant revenue growth. They were able to attract new clients through their vendor relationships, and the cost of acquiring these new customers was relatively low. Moreover, by providing a broader range of services, they built stronger, more loyal relationships with their clients.
Today, the company is doing more than $100 million in total financing per year and driving north of six points per deal. Known for its comprehensive solutions and customer-centric approach, the embrace of a small business lending mindset and expanding their services achieved new levels of success and created lasting value for their clients.
