Pitney Bowes, a shipping and mailing company that provides technology, logistics and financial services, provided $10 million worth of financing to two small business clients: New York City-based Ash NYC and Farmington, MI-located Digital Terrain. The two businesses selected Pitney Bowes Financial Services to augment their primary source of capital and deliver revolving lines of credit and term loans.
“Small businesses are at crisis point right now, as access to the affordable capital they so badly need to grow is more difficult than ever to obtain,” Christopher Johnson, senior vice president at Pitney Bowes and president of Pitney Bowes Financial Services, said. “Many small- and medium-sized businesses (SMBs) are coming to us to augment their primary source of financing, which gives them better value, breathing space between payments and improves their cash flow. Our deep insight and firm commitment to financing Main Street, backed up with over 100 years’ experience helping SMBs succeed gives us a unique perspective and a robust platform from which to deliver capital.”
Ash NYC provides interior design and furniture rental for residential developers, high-end hotels and restaurants. Founded in 2013, the business specializes in the design and furnishing of residential and commercial spaces, often at short notice. This requires access to inventory, which ties up valuable working capital, limiting liquidity for the firm. The company selected Pitney Bowes to augment its primary source of financing, to consolidate existing loans and improve its cash flow with a $3 million working capital line of credit and a $2.2 million term loan.
“We were in a catch-22 situation with orders to fulfil but needing finance for our inventory,” Jonathan Minkoff, CFO for Ash NYC, said. “The team from Pitney Bowes solved this for us. They swiftly built a set of affordable, flexible financial services customized to our business. Their streamlined processes made it easy. Building a small network of financial partners which includes Pitney Bowes improves our access to affordable finance.”
Digital Terrain delivers IT services, including IT consulting and cloud computing services. The company worked with Pitney Bowes to restructure and consolidate its previous loans into a revolving line of credit and term loan, each for $2.5 million. This freed up working capital for Digital Terrain to invest back into the business to drive growth and enable the firm to respond to new opportunities.
“For any small business, I’d recommend diversifying your sources of lending so you’re not reliant on just one lender,” Dinesh Potluri, owner and founder of Digital Terrain, said. “We wanted to restructure an existing credit facility but didn’t want the inconvenience of changing our existing deposit account relationship. The facilities we have from Pitney Bowes complement services from our other financial partners, provide us with better interest rates and give us access to a responsive, deeply experienced team that really knows our business.”
