In branching off from it’s parent Corporation and seeking to stand on it’s own here in the United States, this company had acquired several domestic contracts and was in need of additional equipment for production lines. With negotiations in process for additional clients, scaling for growth was needed to meet immediate equipment needs as well as those of the near future. Securing funding based on equipment owned was at a premium.
ABOUT THE COMPANY
HQ Location: China, Satellite Location: Tennessee
In Business For: less than 2 years in USA
Annual Revenues: $2M
Customer Base: Domestic, Retailers Nationwide
> An immediate need for a new additive composite machine, installation and training for a new production line.
> A second and potential third production line would be needed within the year.
> With parent Company based in China, documentation of participation had to be established to show the U.S. branch was indeed operating independent and majority owned by parters in the United States.
> Master lease for the new equipment was secured that included soft expenses (installation and training).
> Quarterly payments which allowed for three months of initial production before making the first payment.
> Future growth plans for additional production lines will utilize the master lease by expanding it as the Company grows.
A Master lease provided the immediate solution and used existing equipment as collateral. The future growth strategy will involve expanding the Master Lease as the company grows.