Success through leasing for manufacturing equipment operator
Vancouver Island, BC
Building capacity by adding specialty equipment to shop floor
Horst Neumann is an idea man and entrepreneur. He designs and manufactures specialty metal products related to gutters you’d find on houses and buildings everywhere. Horst is a wholesaler/manufacturer, supplying dealers across North America with his products. When you talk to him, you can hear his passion for his business, Custom Metal Products Inc.; “Over the years I wanted to take advantage of opportunities that meant adding more equipment to expand our product line. Even when it was used equipment, or from the USA, Arbutus Capital helped me make it happen.” You’ll find 75% of the gutter products he produces all over the US, the rest in Canada. Horst’s business is based where he loves to live, on Vancouver Island.
When you have to grow fast
The Arbutus team has been dealing with Horst since the 90’s when founder, Bruce Benda, helped finance his first piece of machinery. Since then Horst has grown his business with more lease finance deals through Arbutus than he cares to remember, from $10,000 to over $100,000. Horst shares his experience, “When you are in a small business and trying to build there are 3 ways to get the equipment you need; the bank, lease or wait and save the money. Sometimes, the opportunity means you can’t wait on the bank or the time to save. You have to grow fast. The relationship that the guys at Arbutus offer is something that the banks just won’t do. Mike and Joey deal with your situation - whatever that is - one to one, to find a solution. The banks just won’t do that. I have a relationship now with Arbutus that spans decades. It’s a business relationship that is more like a partnership. They are always there for me.”
Thinking creatively to find a deal that works
Mike Benda, Arbutus Capital Partner, speaks with admiration of Horst’s business drive. “We get a charge out of working with business owners like Horst. They see a market opportunity, get an idea and don’t want to waste time making it happen. They need capital or equipment fast. We can deliver by providing sale leaseback financing or by taking extra collateral if the asset in question is highly specialized. Or if we need to maximize turnaround time, we can skip by some of the traditional underwriting steps such as obtaining audited financials or proving debt serviceability.”
Horst can certainly attest to this. “I’ve been able to grow my business by working with Arbutus. It comes with some risk, yes, like any lease or loan, but when you need to grow right away, it’s an answer. They are flexible and work to find a solution that gets you the deal you need. And, fast! “
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