An Oregon based distribution cold storage company had a fleet of forklifts that needed to be replaced. Having a large warehouse, these pieces of materials handling equipment (MHE) were a necessity for the efficiency of their business. The company was looking to implement a disciplined refresh of the forklifts to avoid obsolescence and keep their business operating at its maximum capacity.
In the past, the company either self-funded these projects with cash or worked with a large bank in their area, but these were no longer the best options because they needed to allocate cash to other areas of their business, and they faced rigid terms and conditions with their bank. With this near $1 million MHE project on the horizon, this company needed to find a lender that didn’t provide any complications or restrictions in the terms and conditions. They wanted to work with a company that took the time to understand their goals, meet their business needs, and have all upcoming projects on one lease to simplify the process.
Knowing a quick turnaround and industry expertise was important to the client, First American was the perfect fit for this project. Having the knowledge and experience of working exclusively with other Food and Beverage companies, we were able to quickly become familiar with this businesses’ unique challenges. Virtual meeting technology enabled First American and the client to work together face to face, despite being miles apart, and build a strong relationship.
It quickly became clear that the company wanted flexible end-of-term options, no fees, and no tax indemnity. First American was able to use this information to create a custom solution with the best all-in rate. Due to our understanding of the industry, the project, and the company’s goals, the client was able to receive a lower implicit rate and ultimately resulted in them paying less than cash for this project. In addition, the client knew of another project coming to fruition within the next two months and First American was able to have both projects commence on one lease schedule with the same rate.
This custom solution provided the client with the right term length, structure, and desired terms and conditions – all on one simplified lease. The equipment was delivered within 10 days of the project details being finalized with First American. With these goals met, the client was able to save money by paying a less than cash price and allocate their cash into other areas of their business all while having brand new, reliable equipment to improve their efficiency and positively impact their bottom line.