YAKIMA, Wash. -- Kush Hans is off to a very nice 2012.
Located southeast of the Mt. Rainier National Park, the five-store ARCO operator was holding an interest-heavy loan that was undercutting his ability to invest and grow his operations.
Paying 7.9% interest, Hans shifted from the mindset of a retailer to that of a consumer. He shopped for the best financial deal and found an area bank willing to offer a 6.5% rate, but Hans was not satisfied.
For a region famous for its selective apple-picking, Hans was equally picky. But soon, the time expended researching lenders, running comparison shopping and dealing with mounds of paperwork, Hans found a player new to the convenience store industry that was willing to help.
Intuit Inc., a company best known for business software solutions like QuickBooks and TurboTax, has helped four million small businesses save time and money. Intuit applied the same concept to Loan Finder and took on Hans' challenge to find a better deal than the one he had found. Intuit Loan Finder quickly returned with a $1.2-million refinanced loan at a rate of 5.2%, saving him $160,000 in total, plus another $8,000 in loan origination fees.
"This is a great way to start the new year," Hans said. "Intuit Loan Finder makes it so easy for me--the savings from this loan will significantly improve my cash flow and allow me to invest in other areas of my business."
Intuit's arrival in the c-store industry is new and potentially a boon for smaller operators struggling to secure the necessary capital to compete against larger competitors.
"We understand the challenges that single-store and small-chain petroleum operators face whether seeking short-term working capital or expansion funding," said Jana Hocker, Intuit Loan Finder's group product manager. "Our deep knowledge about state regulations in this industry and relationships with the right lenders enable us to help fuel retailers like Hans Enterprises Market overcome these obstacles and get the financing they need to grow their business."
In an exclusive interview with CSP, Hocker said the aftershocks of the banking crisis have continued to reverberate especially with smaller operators.
"We see the convenience and retail-petroleum channels as growth industries with tremendous upside," she said. "One of the challenges they're facing is the ability to secure loans at competitive rates."
To address this need, Intuit launched a loan matching service to help small businesses obtain financing from several thousand up to a few million dollars. "Most small business owners know their local banks and credit unions. What we provide is a national scope and a single application gives instant access to hundreds of lenders," said Hocker. "We're able to shop for the best terms, from interest rates to origination fees while greatly reducing the paperwork required. Kush Hans and his ARCO stores are among the first of many operators we expect to help this year and hereafter."
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