A generous financing program helped an entrepreneur revive a fading franchise.
Bill Ellis’ 13 years of experience in equity sales gave him a leg up when it came to researching franchises. He chose Volvo Rents, a construction-equipment rental franchise, because of its unique financing program.
While many franchisors help franchisees obtain third-party financing, those that actually offer financing themselves are much rarer. Volvo Rents, through its affiliate Volvo Financial Services, breaks the mold, offering financing of up to $5 million per location for equipment, leasehold improvements and other startup expenses. As Nick Mavrick, vice president of marketing, says, “It’s our capital at risk alongside that of the franchise owners.” To date, Volvo Rents has invested more than $450 million in its franchisees.
With the franchisor’s help, Ellis bought a struggling Volvo Rents store in Langhorne, Pennsylvania, in 2005. But he knew capital wasn’t all he needed to make the business succeed this time around. He replaced the former owner’s equipment and cut ties with their existing customers in order to focus solely on commercial construction clients. “It was a little nerve-wracking,” he admits, “but it was the right thing to do.” He rewards the top customers he’s attracted since with trips to sporting events–including the Super Bowl. Read full story.
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