Following the agreement with NFS Leasing, Trident Trucking was able to halve its monthly equipment expenditures. With this additional cash flow, it has seen increased profitability, along with the flexibility and opportunity to grow its business. “They were simple and straightforward, very honest and upfront with what could be accomplished,” said Frank Bou of Trident Trucking.
SUMMARY
A new contract that leads to an increase in business volume can drive profitable growth, but the necessary investments that enable that growth can be a big challenge, sometimes leading to missed opportunities. Here is how the growth of a construction company was fostered.
While a long-term solution was required to obtain an advanced excavator model, the traditional short-term financing requirements were not feasible.
The custom finance solution enabled the company to halve its monthly expenditure on equipment. This allows the business to increase its cash flow and upgrade its equipment to bid more competitively in a highly competitive marketplace.
THE CLIENT
Trident Trucking is a site contractor for large scale construction projects. Trident currently has the capabilities to completely excavate a site and set it up so that others can come in and build vertically.
Trident Trucking is comprised of a team of 25 employees and has an exciting vision for the future. Trident Trucking aspires to become land developers themselves, a natural step in the company’s growth process.
THE CHALLENGE
Trident Trucking required newer and more sophisticated equipment to meet its growing capacity requirements. It had just signed a long-term project with a previous customer and its existing equipment would not be able to effectively support the contract. Its initial ideas were to use the old equipment or rent new advanced excavators, but each option had its drawbacks:
- Continued use of older equipment may compromise schedule, efficiency and quality of work, and add to costs, as repairs and upgrades would be required.
- Renting new equipment may make sense for short-term projects, but when it’s a long-term project, the economics just aren’t there.
THE SOLUTION
Trident Trucking sought financing, which would allow them to purchase new excavators. Its first thought was to connect with the banks, but Trident quickly realized that the banks required too much money up front and the time to close the deal would be far too long. Trident then met with NFS Leasing and worked together effectively and efficiently to secure a mutually advantageous equipment lease.
NFS Leasing delivered the customized solution. “They were simple and straightforward, very honest and upfront with what could be accomplished,” said Frank Bou of Trident Trucking. “We were able to successfully write our project plan based on NFS’s commitment and that helped us start off the project on the right foot.”
EXECUTION
Trident Trucking and NFS Leasing worked closely together throughout the process, allowing the project to get started on time and run smoothly. Bou adds, “The communication with NFS Leasing was great. They were very easy to reach, hassle-free, and extremely knowledgeable.”
Whatever the situation, be it unique financing terms or significant deadlines, the NFS Leasing team is very responsive and will find a solution.
RESULTS
Following the agreement with NFS Leasing, Trident Trucking was able to halve its monthly equipment expenditures from $85,000 to $42,000. With this additional cash flow, it has seen increased profitability, along with the flexibility and opportunity to grow its business.
Freeing up this amount of cash has not only allowed Trident to update its equipment, but also to bid more competitively in a highly competitive market. Trident Trucking now seeks to acquire and develop its own site for construction.
