Commercial Real Estate Financing
Puzzles have been around for centuries but, prior to the pandemic, were usually reserved for vacations or family gatherings. Sitting at a table without devices for hours on end didn’t appeal to a lot of people until there was little else to do. When the pandemic sent demand skyrocketing, the puzzle manufacturer needed additional equipment to increase their production capacity. With their current machines running 24 hours a day, they were still unable to keep up. Wholesale orders increased rapidly as retailers scrambled to meet consumer demand.
The company, though well-positioned to increase its market share, had counted on steady demand for over a decade. Because of this, they did not hold significant cash in the company accounts. Due to the specialized nature of the equipment, the cost was $600,000 for the additional manufacturing equipment and custom packaging equipment. When it came time to make a new purchase, they turned to an equipment lease to finance additional puzzle manufacturing equipment and packing machinery.