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The 504 Company Lends to Business in Need of Larger Space to Meet National Retailer Demand
An e-commerce retailer and wholesaler of auto accessories was housing its administrative and warehouse operations in separate, leased locations more than three miles apart. This was causing inefficiencies in communication and logistics, and it was becoming difficult to meet demand from retail partners such as Amazon and eBay.
Leases for both locations had expired and the company’s rent was going to increase permanently.
A partner bank recognized the fit for a 504 loan.
The 504 Company provided $1,210,000 of a $3,025,000 loan to help the company purchase a large warehouse space with only 10% down.
The loan allowed the company to consolidate locations into a two-story building with adequate space for both inventory and office operations.
The project allowed the client to acquire and maintain a contract with WalMart, as they are now efficiently able to manage and fulfill shipment orders.
The new property is about 20 miles from the original locations, allowing all existing employees to retain their jobs. In addition, six more jobs will be created within two years.