Pitney Bowes Inc. announced that Wheeler Financial from Pitney Bowes has closed a financing transaction with Choice Canning, the food producer. Headquartered in India with a subsidiary in the U.S., Choice Canning will use the capital generated by the transaction to invest in refrigerated vehicles for transportation at its production facility in Pittston, PA.
Alok Modani, Chief Financial Officer, Choice Canning, said, “It only took us a couple of minutes to do the math and see the cost savings that Wheeler Financial could provide. We are already benefiting from the transaction.” Modani prefers to work with financial services firms that specialize in the type of financing he is seeking. “The bank that finances our inventory, for example, might not have the expertise to understand the details of an equipment purchase,” he explained.
A division of Choice Trading Corporation Pvt Ltd., Choice Canning produces frozen foods at its Pittston facility which comprises a production line and four cold storage facilities. The business relies on four refrigerated trailers and a specialized vehicle to transport goods between buildings. Prior to the contract with Pitney Bowes, Choice Canning rented these vehicles. As an alternative flexible financial solution, Wheeler Financial provided Choice Canning with a five-year capital lease to finance the vehicles. This generates $3,000 a month cost savings compared with the short-term rental of the assets, as well as an additional $25,000 monthly savings by eliminating the expense of third-party freight transportation to port. At the end of the lease, Choice Canning will own any assets, free of any lien.
Christopher Johnson, Senior Vice President and President, Pitney Bowes Financial Services, said, “Financing equipment helps manufacturers such as Choice Canning generate savings and preserve cashflow. Our century-strong legacy of supporting small- and mid-market businesses gives clients peace-of-mind, helping them thrive and grow with the liquidity and support they need to succeed.”
Equipment financing is one of the ways Pitney Bowes Financial Services supports small- and mid-market businesses. The company delivers a range of affordable, flexible working capital solutions for SMBs and high-volume shippers to optimize cashflow and protect liquidity.
Wheeler Financial from Pitney Bowes is a subsidiary of the Pitney Bowes Bank, Inc.