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Pitney Bowes Inc. (NYSE: PBI), a global technology company that provides commerce solutions in the areas of ecommerce, shipping, mailing and financial services, today 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, Pennsylvania.
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 explains.
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 $3000 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 just 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.
About Wheeler Financial from Pitney Bowes
Wheeler Financial from Pitney Bowes is a subsidiary of the Pitney Bowes Bank, Inc., Member FDIC, dedicated to helping small to lower middle market clients acquire the critical assets they need to grow and expand their business with innovative financing solutions. The Pitney Bowes Bank, together with Pitney Bowes, has been financing Pitney Bowes equipment for over 20 years. Our expansion into helping our clients finance other purchases reflect our continued commitment to helping our customers grow efficiently and effectively.
About Pitney Bowes
Pitney Bowes (NYSE:PBI) is a global technology company providing commerce solutions that power billions of transactions. Clients around the world, including 90 percent of the Fortune 500, rely on the accuracy and precision delivered by Pitney Bowes solutions, analytics, and APIs in the areas of ecommerce fulfillment, shipping and returns; cross-border ecommerce; office mailing and shipping; presort services; and financing. For 100 years Pitney Bowes has been innovating and delivering technologies that remove the complexity of getting commerce transactions precisely right. For additional information visit Pitney Bowes, the Craftsmen of Commerce, at www.pitneybowes.com.
View source version on businesswire.com: https://www.businesswire.com/news/home/20201222005063/en/
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