“NFS took the time to assess us specifically; our company structure and our management structure,” said Malachi Salcido, Founder and CEO of Salcido Enterprises. By taking the time to listen to the Salcido story, NFS was able to structure a deal that uniquely fits Salcido Enterprises requirements. Malachi added, “NFS was willing to sign lease deals that were fair, while it felt like other leasing companies would take advantage of us at every opportunity.”
SUMMARY
The achievement of major economies of scale can be a key driver of profitable growth. That is particularly true for high-tech businesses.
- The building of a data center is good, the building of two centers is GREAT. However, financing two can represent a significant investment.
- Obtaining a fair funding solution was a key step, allowing the company to build two facilities and create the opportunity to grow quickly and increase 4X’s profitability.
Here’s how a business has been able to surpass traditional expectations and reach new levels of growth and profitability in its industry.
THE CLIENT
Salcido Enterprises is a high-tech database space builder and manager. They design, develop and construct data space for servers and manage all operations once construction is complete.
The combination of expertise in large-scale high-tech site development, mechanical and electrical engineering and manufacturing, facilities management, and cryptocurrency has contributed to the rapid growth of Salcido’s data center presence in Central Washington.
THE CHALLENGE
Salcido has two major capital requirements: build a sufficient data center facility and acquire the required servers. This means significant initial costs to obtain capital for the facilities and servers that fill them.
As with all technologies, economies of scale are extremely important. Constructing one facility at a time is inefficient and can slow growth. This is why Salcido has implemented several projects at the same time.
THE SOLUTION
Salcido knew it had to find a way to finance its equipment to fuel the growth necessary to differentiate itself in the industry. Salcido sought funding that would allow it to build multiple data centers at once.
Salcido engaged with NFS Leasing through a broker. By taking the time to listen to Salcido’s story, NFS Leasing has been able to structure an agreement that meets Salcido Enterprises’ demands in a unique way. “NFS took the time to assess us specifically; our company structure and our management structure. They were willing to sign lease deals that were fair, while it felt like other leasing companies would take advantage of us at every opportunity,” said Malachi Salcido, Founder and CEO of Salcido Enterprises.
EXECUTION
Salcido Enterprises and NFS Leasing were able to work together in a streamlined manner and on reasonable terms for both sides. “It seemed as if NFS wanted to get the deal done. There were no onerous processes, no particularly crafted steps and procedures to follow, which made NFS easy to work with,” said Malachi. Salcido Enterprises has been able to carry out its projects and build its data centers easily, leading to impressive results for its growth potential.
An equipment lease would allow Salcido to build-out multiple data centers at once, with much less overhead cost and in half the time it would have taken without having secured the necessary capital. This in turn has contributed to propelling Salcido into a position where it has the capacity to use its capital for other purposes.
RESULTS
In the ten months since the operation, Salcido Enterprises has been able to quadruple its revenues. With economies of scale in mind, and its efficient business model, Salcido Enterprises continued to operate with the same number of employees, all while increasing its profitability by 4x.
This has enabled extreme business growth. The opportunity to secure an equitable equipment lease with NFS has had a profound impact on Salcido Enterprises’ productivity, profitability and growth outlook.
