“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 fit 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.”
Achieving great economies of scale can be a key driver of growing profitably. This is especially true for high-tech companies. Below is a story on how a company was able to exceed traditional expectations and reach new levels of growth and profitability within its industry.
Building one data center facility is good, building out two data centers is GREAT. However, financing two can mean a significant investment
Obtaining a fair funding solution was a key milestone, allowing the company to build out two facilities and help create the opportunity to grow rapidly and increase profitability by 4X
Salcido Enterprises is a builder and manager of high technology data center space. They design, develop, and build-out data space for servers and manage all operations once the build-out 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.
Salcido has two large capital requirements: building a sufficient data center facility and acquiring the required servers. This means significant upfront cost to secure capital for both the facilities and the servers that fill them.
As with all technologies, economies of scale are extremely important, which makes building out one facility at a time much less efficient and more tedious, resulting in slow, incremental growth. This is why Salcido implemented multiple projects simultaneously.
Salcido knew it had to find a way to fund its equipment to fuel the necessary growth to make its mark in the industry. Salcido looked to leasing companies to try to work together for financing that would allow it the opportunity to build-out multiple data centers at once.
Salcido engaged NFS Leasing through a broker and by taking the time to listen to the Salcido story, NFS Leasing was able to structure a deal that uniquely fit Salcido Enterprises requirements. “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.
Salcido Enterprises and NFS Leasing were able to work together in a streamlined fashion and on terms that were reasonable to both parties. “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 was able to implement its projects and build-out its data centers with ease, leading to impressive results for its growth opportunity.
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. In turn, this helped propel Salcido to a position where it has the ability to utilize its capital for other purposes.
During the ensuing ten months following the deal, Salcido Enterprises was able to quadruple its revenue stream. With the economies of scale being critical for a high-tech company, Salcido Enterprises continued to operate with the same number of employees as it had before due to its effective and efficient business model, all while it increased its profitability by 4x the amount.
This allowed for extreme growth of the business. Needless to say, being able to secure a fair equipment lease with NFS had a profound impact on Salcido Enterprises productivity, profitability, and outlook on future growth.