Each year, the Inc. 5000 list ranks the fastest growing private companies in the U.S. These high-growth companies span a range of industries and have potential for exceptional expansion in revenue, employment, and market share. Despite measured success, high-growth companies often experience issues qualifying for business loans.
“These are businesses that can be capital-intensive, and they may not have enough collateral for conventional financing,” explains NYBDC President and Chief Executive Officer Pat MacKrell. “NYBDC mitigates lending risks by using SBA-backed programs and other options to help these companies access the capital they need.” NYBDC’s tenacity and eye for creative financing options have supported 13 high-growth companies on the 2016 and 2017 Inc. 5000®.
“They came with an attitude that they’d get it done for us, and never gave us any reason to doubt it,” says Spencer Noakes – owner of craft beverage distributor Remarkable Liquids (#652 on the 2017 Inc. 5000). Even with explosive growth, the company didn’t qualify for traditional funding. Spencer was introduced to NYBDC by Capital Bank, and together, they provided financing via the SBA 7(a) program for overhead costs to take on new opportunities. “We would not have made the Inc. 5000 list the last two years without NYBDC’s help.”
Another common issue for high-growth companies is a lack of working capital for seasonal inventory. NYBDC helped Field Goods (#1,584 on the Inc. 5000)–a produce delivery company that supports local farms–with this issue as it entered the winter season.
“Our biggest challenge is that each fall, we need to buy the frozen inventory that we use in January,” explained founder Donna Williams. With working capital support and increased efficiency through the SBA 7(a) program, Field Goods has its sights set on further expansion.
NYBDC’s loan options and repayment terms are beneficial to high-growth businesses, allowing them to have more funds available to reinvest. DiamondBack Truck Covers (#4,280 on the Inc. 5000) experienced this first-hand working with The 504 Company.
Along with Northwest Bank, The 504 Company provided SBA 504 financing for a new, custom manufacturing facility for DiamondBack, helping to streamline their production process and provide more jobs in Central Pennsylvania.
Diamondback’s Chief Financial and Operating Officer Ben Eltz explains, “We had an unexpected growth surge that started in January 2017. If we hadn’t moved into this building, we wouldn’t have been able to deliver on that.”
“We’re proud to go above and beyond for our clients,” says Pat. “We work hard to find the best option for their financing needs and ensure they’re able to stay on the trajectory for success.”
