Health Care Practice
One of our clients is a medical practice which had been referring some of their clients to other doctors for services that they weren’t able to provide because they did not have the medical equipment necessary to perform certain treatments and procedures. By using equipment financing to obtain the tools needed to keep those patients, our client began providing the additional services, which enabled them to capture 15% more revenue without adding new patients to their practice. In addition to the increased revenue from existing patients, they were also able to market the new services to new prospective patients. Rather than using cash from their business to purchase the equipment, SMB Compass secured an $110,000 equipment loan over 5 years. The increase in revenue quickly covered the monthly expense of the equipment, before marketing for prospective patients!
Another client owns and operates a transportation company, and had the opportunity to take on a new contract if they were able to get two more trucks on the road. They had four trucks on the road and had paid in cash when purchasing these trucks. This purchase drained their operating cash flow, and in turn they couldn’t afford to pay for the two new trucks. They were considering leasing the two trucks, but the monthly leasing payments would be expensive, and included additional fees dependent on the miles they traveled. We were able to finance two trucks and trailers for our client, which were valued at $160,000 over four years. Our client was able to take on the new contract, which is generating them an additional $45,000 in monthly revenue. The monthly payments turned out to be less than it would have cost for them to lease the trucks, and after the term is over, they will still own the trucks outright!
One of our clients owns a paving company, and had been losing out on business opportunities because they could not take on longer commercial projects. They started the business 6 years earlier, and as the business had grown, it was being offered more opportunities. To grow the business, our client needed more equipment to be able to work multiple jobs at once and take on some of these bigger projects. This equipment was expensive, and the business didn’t have the extra working capital to purchase the machinery needed in order to complete the jobs. They originally looked to secure a loan, but the longest term available to them was 24 months, and it would have had too high of a monthly payback. We were able to secure equipment financing that was stretched out over five years and would cause less stress on the company’s cash flow. After purchasing four new pieces of equipment the company saw a substantial increase in the company’s productivity. Our client now has enough equipment to take on larger projects, and work multiple different projects at one time. After our assistance with this financing, the business is quickly expanding and generating more revenue than ever!