A FINANCING CASE STUDY
The who, what, when, where and why for choosing financing over paying up front for improvements to your business.
WHO: An Atlanta based Software Company (Customer)
WHEN: Fall of 2020
WHERE: Atlanta, GA
WHAT: The Software Company was moving to a new office location and was working with a local Dealer to purchase approximately $235,000 of office furniture to furnish their new headquarters. The Customer had originally planned on paying cash for the purchase and had already placed the order and paid the required 50% deposit. Two weeks prior to the delivery and the final installation of all the assets, the Customer decided they would rather finance the purchase in order to conserve capital for new hires they planned on making in 2021. The Software Company was hoping to get their deposit back and have the full $235K financed. The dealer introduced Americor Capital to their Customer to put a solution in place that would meet the Software Company’s needs. After speaking with Americor, the Customer shared that their financials had showed losses over the last few years and there was a recent change in ownership over the Summer of 2020. Both of these items traditionally make this a difficult deal to get approved for financing.
WHY: Freeing up the capital tied to the furniture purchase would allow the Software Company to hire additional staff to increase revenue and assist in meeting future growth targets.
HOW: Americor Capital worked with the Software Company and determined that a 60 month capital lease was the best financing option for their company. Americor was able to get the Customer approved within 24 hours despite the financial challenges mentioned earlier and had lease documents in front of them for signature the next day. With regard to the deposit that the Software Company had already placed to the Dealer; Americor worked out a solution with the Dealer where Americor would pay the Dealer 100% of the equipment cost at final delivery and installation of the equipment. The dealer in turn would credit the Customer back for the 50% deposit. A ‘win-win’ for both parties.
SUMMARY: In the end, the Customer was happy that they were able to conserve their capital to be better used for growing their company and the dealer was able to provide additional value by making the introduction to Americor Capital. Most importantly, the Dealer closed the transaction and satisfied their Customer’s request.
If you would like to learn more about providing a financing solution to your customer or strategize about an existing deal in your pipeline, please don’t hesitate to reach out to Americor Capital.