After consummating the deal with NFS Leasing, Trident Trucking was able to cut its monthly equipment expense in half. With that additional cash flow, it experienced increased profitability, and 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.
A new contract resulting in increased business volume can drive profitable growth but the required investments that enable that growth can present a big challenge, sometimes resulting in missed opportunity. This is a story of how a construction company’s growth was enabled.
- A long-term solution was needed to secure an advanced model Excavator, but short-term traditional financing requirements were not feasible.
- The custom financed solution allowed the company to cut its monthly equipment expense in half, allowing for additional cash flow, and the ability to update its equipment to bid more competitively in a highly competitive market.
Trident Trucking is a site contractor for large scale construction projects. Trident currently possesses the capabilities to completely excavate a site and set it up so that others may come in and build vertically.
The Trident Trucking team has grown to 25 members, and has an exciting vision for the future. Trident Trucking has ambition to become land developers themselves, a natural next step in the growth process for the company.
Trident Trucking was in need of newer, more advanced equipment, to meet expanding capacity needs. It had just signed an upcoming long-term project with a past customer and its current equipment would not be able to support the contract efficiently. Its initial thought was to either use its old equipment or rent new, advanced excavators, however each option had drawbacks:
- Continuing to use the older equipment could potentially compromise the timeline, efficiency and quality of the job, as well as add to the costs, as repairs and updates would be needed
- Renting new equipment may make sense for short-term projects, but when facing a long-term project, the economics simply did not add up.
Trident Trucking sought financing which would allow it the opportunity to purchase the new excavators. Connecting with banks was its first choice, until it quickly realized that the banks required too much upfront money and the time it would take to close the deal would be far too long. Trident then came across NFS Leasing and effectively and efficiently worked together to complete an equipment lease that would be mutually beneficial.
NFS Leasing delivered a custom 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.”
Trident Trucking and NFS Leasing were able to work closely together through the entire process, which allowed the project to begin 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.”
No matter what the question is, whether it is on the terms of the deal or important deadlines, the NFS Leasing team is highly responsive and will find the answer.
After consummating the deal with NFS Leasing, Trident Trucking was able to cut its monthly equipment expense in half, from $85,000 to $42,000. With that additional cash flow, it experienced increased profitability, and the flexibility and opportunity to grow its business.
Freeing up that amount of cash flow not only allowed Trident the ability to update its equipment, but to also bid more competitively in a highly competitive market. Trident Trucking is now looking at obtaining and developing its own site for construction.