VENDOR SPOTLIGHT Financing For the Future:...
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VENDOR SPOTLIGHT You don’t need an industry seminar or an article in New Jersey Automotive to tell you that things in the auto body in- dustry are changing at a rapid pace. With aluminum, carbon fiber, ever-intensifying OEM-recommended procedures and a host of other things impacting the equipment needs of even the most advanced repair facilities, industry pros are now facing a new era of financial concerns. These days, a shop owner needs to incorporate the equipment that is going to bring him or her into the next decade and beyond. Thankful- ly, the AASP/NJ community has a new friend who is able to provide the financing necessary for association members to upgrade their shops without having to worry about making ends meet in the process. One of AASP/NJ’s newest members, Access Commer- cial Capital is an automotive services finance and leasing company dedicated to helping repair businesses get the tools and equipment they need to progress. Need an alumi- num welder, a new spray booth or upgraded frame straight- ening or tire balancing equipment? These are some of the things you could now purchase for your business thanks to Access Commercial Capital’s assistance. Access Commercial Capital Co-Founder and President Edward P. Kaye and his partners have been in the finance business for the past 25 years. After investigating a variety of industries, they discovered that there was a void for reliable, reasonably priced financing in the automotive service sector. “Many small finance businesses charge an arm and a leg for automotive service equipment, and the large banks are typically looking to do large transactions – those over $250,000,” explains Kaye. “But the average deal for the aver- age shop owner is a $50,000 transaction or less. We want to provide stable funding for that market. “Working with an independent finance company such as ours is a lot easier than working with a large retail bank,” he continues. “We try to make the process simple and an easy fit for the shop owner. We ask them basically for a complete credit application and their business bank statements for the last three months. For over 90 percent of the transactions, we can make a decision based on that. We turn around the approvals in a day; contracts are then turned around the same day and we can fund the transaction the following day.” Minimum requirements include being in business for at least two years and having net-positive cash flow and good (not necessarily great) personal credit. In addition to equipment financing and leasing, Access also offers working capital loans. Shops can use up to $500,000 of working capital to: • purchase new shop equipment and restock inventory; • expand or renovate; • enhance marketing efforts; • cushion against seasonal or slow periods; • preserve their existing lines of credit; and • offer vehicle repair financing to their customers. To maximize its presence in the region, Access Com- mercial Capital recently joined AASP/NJ and exhibited at the NORTHEAST ® Automotive Services Show for the first time. Kaye is pleased to report that he has already established firm relationships with other members throughout the state. “We approached the association because we believe that the good shops – those who are investing in their businesses and the future – are also going to be members of their trade associations,” he says. “Those are the compa- nies that are growing, stable and would be able to qualify for financing. Aligning ourselves with AASP/NJ has enabled us to meet those shops in a real focused way. We’ve received a lot of inquiries; we can see that there is a lot of activity in the market. We anticipate that within the next six to 12 months, a lot of those questions will result in customers purchasing equipment and us being able to help them with financing.” Looking ahead, Access Commercial Capital intends to offer financing for titled vehicles by the end of the year, allow- ing members who are interested in adding a new tow truck the opportunity to do so just as bad weather begins to hit the area. In the meantime, Kaye offers some valuable words of advice for his fellow AASP/NJ members as they consider their equipment options. “The key is that they have to know that the equipment they’re purchasing is going to increase their bottom line,” he says. “They really have to understand that in order to grow FINANCING FOR THE FUTURE: INTRODUCING 38 | New Jersey Automotive | June 2016
Transcript of VENDOR SPOTLIGHT Financing For the Future:...
VENDOR SPOTLIGHT
Youdon’tneedanindustryseminaroranarticleinNew Jersey Automotivetotellyouthatthingsintheautobodyin-dustryarechangingatarapidpace.Withaluminum,carbonfiber,ever-intensifyingOEM-recommendedproceduresandahostofotherthingsimpactingtheequipmentneedsofeventhemostadvancedrepairfacilities,industryprosarenowfacinganeweraoffinancialconcerns.Thesedays,ashopownerneedstoincorporatetheequipmentthatisgoingtobringhimorherintothenextdecadeandbeyond.Thankful-ly,theAASP/NJcommunityhasanewfriendwhoisabletoprovidethefinancingnecessaryforassociationmemberstoupgradetheirshopswithouthavingtoworryaboutmakingendsmeetintheprocess. OneofAASP/NJ’snewestmembers,AccessCommer-cialCapitalisanautomotiveservicesfinanceandleasingcompanydedicatedtohelpingrepairbusinessesgetthetoolsandequipmenttheyneedtoprogress.Needanalumi-numwelder,anewsprayboothorupgradedframestraight-eningortirebalancingequipment?ThesearesomeofthethingsyoucouldnowpurchaseforyourbusinessthankstoAccessCommercialCapital’sassistance. AccessCommercialCapitalCo-FounderandPresidentEdwardP.Kayeandhispartnershavebeeninthefinancebusinessforthepast25years.Afterinvestigatingavarietyofindustries,theydiscoveredthattherewasavoidforreliable,reasonablypricedfinancingintheautomotiveservicesector. “Manysmallfinancebusinesseschargeanarmandalegforautomotiveserviceequipment,andthelargebanksaretypicallylookingtodolargetransactions–thoseover$250,000,”explainsKaye.“Buttheaveragedealfortheaver-ageshopownerisa$50,000transactionorless.Wewanttoprovidestablefundingforthatmarket. “Workingwithanindependentfinancecompanysuchasoursisaloteasierthanworkingwithalargeretailbank,”hecontinues.“Wetrytomaketheprocesssimpleandaneasyfitfortheshopowner.Weaskthembasicallyforacompletecreditapplicationandtheirbusinessbankstatementsforthelastthreemonths.Forover90percentofthetransactions,wecanmakeadecisionbasedonthat.Weturnaroundtheapprovalsinaday;contractsarethenturnedaroundthesamedayandwecanfundthetransactionthefollowingday.”
Minimumrequirementsincludebeinginbusinessforatleasttwoyearsandhavingnet-positivecashflowandgood(notnecessarilygreat)personalcredit. Inadditiontoequipmentfinancingandleasing,Accessalsooffersworkingcapitalloans.Shopscanuseupto$500,000ofworkingcapitalto:
•purchase new shop equipment and restock inventory;
•expand or renovate;•enhance marketing efforts;•cushion against seasonal or slow periods;•preserve their existing lines of credit; and•offer vehicle repair financing to their customers.
Tomaximizeitspresenceintheregion,AccessCom-mercialCapitalrecentlyjoinedAASP/NJandexhibitedattheNORTHEAST®AutomotiveServicesShowforthefirsttime.Kayeispleasedtoreportthathehasalreadyestablishedfirmrelationshipswithothermembersthroughoutthestate. “Weapproachedtheassociationbecausewebelievethatthegoodshops–thosewhoareinvestingintheirbusinessesandthefuture–arealsogoingtobemembersoftheirtradeassociations,”hesays.“Thosearethecompa-niesthataregrowing,stableandwouldbeabletoqualifyforfinancing.AligningourselveswithAASP/NJhasenabledustomeetthoseshopsinarealfocusedway.We’vereceivedalotofinquiries;wecanseethatthereisalotofactivityinthemarket.Weanticipatethatwithinthenextsixto12months,alotofthosequestionswillresultincustomerspurchasingequipmentandusbeingabletohelpthemwithfinancing.” Lookingahead,AccessCommercialCapitalintendstoofferfinancingfortitledvehiclesbytheendoftheyear,allow-ingmemberswhoareinterestedinaddinganewtowtrucktheopportunitytodosojustasbadweatherbeginstohitthearea.Inthemeantime,KayeofferssomevaluablewordsofadviceforhisfellowAASP/NJmembersastheyconsidertheirequipmentoptions. “Thekeyisthattheyhavetoknowthattheequipmentthey’repurchasingisgoingtoincreasetheirbottomline,”hesays.“Theyreallyhavetounderstandthatinordertogrow
Financing For the Future:
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theirbusiness,they’regoingtoneedtokeepcurrentandhaveamodernizedshop.Withoutthattypeofequipment,theirbottomlinewillshrink.Theyalsohavetobecarefulthatthey’renotbitingoffmorethantheycanchewandbuyingequipmentthatthey’renotsurethey’regoingtoutilize.” FormoreinformationonAccessCommercialCapital,visitaccesscapital.bizorcontactEdwardKayeat(516)[email protected]
Left to right: eric coolbaugh (co-founderand corporate vice president), edward Kaye
(co-founder and president) and Michael Kaplan (co-founder and corporate vice president)
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