BELLEVUE, Wash.--(BUSINESS WIRE)--June 28, 2005--Between sky-high oil prices and sagging profits, finding a pleasant story in the U.S. aviation industry happens about as often as a flight taking off and landing on time these days. In fact, according to the Bureau of Transportation, delays and lost baggage both increased in 2004.
Amidst hanging clouds of negativity, a few businesses manage to prosper and rise above them. One such company, Soundair Aviation Services LLC, has shown consistent growth during the past three years. Based in Snohomish, Wash., Soundair specializes in refurbishing and repairing airline parts for both commercial and private jets. Its clients include airlines and airline leasing companies as well as freight haulers such as FedEx.
"Since 2001 the airlines have been trying to cut costs in order to stay in business. They have tried to outsource much of their third-party maintenance work," says Bob Klem, president and co-owner, Soundair. "For the past few years, we've been hiring in the face of a downturn, and our business plan calls for more growth through expansion and acquisition."
One reflection of the growth Soundair experienced is the new 18,500 square feet facility in Snohomish, an expansion from the company's previous Bellevue location. The move required $2.3 million in financing to purchase the land and construct the facility. As the company explores options for financing, Klem came across a piece of direct mail from GE Commercial Finance, Business Property.
"I really felt Business Property couldn't be competitive with our bank, but I gave them a call to find out what they could do for us," says Klem. "As it turned out, they could do quite a bit."
Rob Doxee, the Business Property representative who worked on the deal with Soundair, put together a financing package providing Soundair with more money up front, which allowed for greater cash flow as the company continued to expand. The SBA 504 loan had an 82 percent loan-to-value ratio, giving Soundair an additional $500,000 in financing beyond what their bank could offer.
Working with Business Property came with several other benefits. The independence from other business loans meant the Business Property loan applied solely to real estate, placing Soundair in a more comfortable, flexible position than the banks, who usually cross-tie different business loans. Doxee even arranged a detailed appraisal of the property, ensuring Soundair received a fair deal.
"The property we wanted to purchase was not as highly valued as we thought it was," says Klem. "Rob went out of his way to help us. We've worked with a lot of lenders since we began business in 1985, but we've never had a better relationship with a lender than we do with Business Property.
"Business Property is the leading 504 lender in the Pacific Northwest. According to Doxee, the level of service and flexibility they offer customers allows them to establish strong customer relationships."
"Having the resources and know-how of a company like GE is a tremendous asset to small businesses as they look to grow and expand," says Doxee. "We are able to tailor a solution to give them the best financing package possible."
For Soundair, that financing has helped them continue flying in an industry having trouble getting itself off the ground.
GE Commercial Finance, Business Property is a leading provider of single tenant/owner-occupied commercial real estate financing in the United States. With assets of more than $13B, the business serves commercial real estate owners, investors, developers, and brokers. Business Property offers conventional debt and SBA loans, as well as flexible, structured products tailored to meet the capital needs of small to middle market businesses in diverse industries. More information is available at www.gebusinessproperty.com or by calling toll-free 888-335-4372.
GE Commercial Finance, which offers businesses around the globe an array of financial products and services, has assets of more than US$230B and is headquartered in Stamford, Conn., USA.
GE (NYSE: GE) is Imagination at Work -- a diversified technology, media and financial services company focused on solving some of the world's toughest problems. With products and services ranging from aircraft engines, power generation, water processing, and security technology to medical imaging, business and consumer financing, media content, and advanced materials, GE serves customers in more than 100 countries and employs more than 300,000 people worldwide. For more information, visit www.ge.com.
Contacts
Tag Team Global
Gini Dietrich, 312-787-7249
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or
GE Commercial Finance
Nancy Nyikes, 314-205-3540
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Jeff Wilson
GE Capital Corporate Finance
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1-203-749-6340