Last week, we featured Rescue Welding as one of our customers worth highlighting. This week, we look at how Direct Capital financing helped their business grow.
When Rescue Welding set out to add fabrication to its services, they knew they needed financing for their new equipment and needed it fast.
In recent months, the company has worked alongside Edward O’Donnell at Direct Capital for three separate transactions, all of them aimed at helping Rescue Welding move into the fabrication business with gusto. With 25 years under their belts in welding but wanting to expand on their bustling business, Carl and Zach Page decided to add fabrication to their Somersworth, New Hampshire shop just a short time ago.
“We’re getting our feet wet,” Zach Page said, which appears to be an understatement.
The addition of fabrication work involved purchasing three major pieces of equipment, with more on the way. Each was more than $10,000. While the company has weathered the recession well by running a lean operation, that kind of working capital* isn’t always readily on hand for small businesses.
Having worked with Direct Capital since 2004, Rescue Welding was familiar with the kind of equipment financing the company offers. Zach Page pointed out two of those pieces of equipment when I visited way back in 2011, a new fork truck that tripled the company’s steel-lifting capacity and a machine that can punch holes in steel. Both are in use now.
Page said the company is not competing directly against giant fabrication shops across the nation and thus doesn’t have to worry about fighting for those clients. Instead, he said, Rescue Welding is hoping to fill the demand for smaller orders.
“We don’t eat from the same bowl,” he said, but “fabrication is all extremely detail-oriented and accurate. That’s very much a part of what we do.”
The fabrication business is off and running now, and Page was optimistic about the future. The equipment leased by Rescue Welding will allow them to fabricate equipment pieces for customers, making them a more versatile player in the space. Adding that to an expected bounce in welding business
By getting their working capital and equipment financing to help them obtain equipment, Page said they’ve also given themselves cash flow flexibility, an important consideration for a small business that just survived a recession.
“In our particular financial climate, it’s much more beneficial than paying all cash,” he said.
If fabrication demand takes off in the months ahead, Page said the company will look to Direct Capital for more equipment to allow them to continue to grow.
“We’ll be looking at Direct Capital for much larger items (in the future),” Page said.
To learn more about how Direct Capital can help your business grow, contact us!
*Working capital not available in the following states: AK, DE, ND, VT