Borrower name: Eric Dales
In this edition of our Grow America Diaries series, we meet Eric Dales, the owner of Adams Automatic in Olmstead Falls, Ohio. Eric is the fourth owner of this small, family-run contract manufacturer, having purchased the company after working there for more than 12 years. Eric shares his company’s long history with Grow America and explains how Adams Automatic’s most recent loan kicked off a new period of growth.
Business name/brief description: Adams Automatic is a CNC (Computer Numerical Control) contract manufacturer, meaning it uses computer-run machines to make parts, such as bolts and hydraulic valves, for other companies. Eric co-owns and runs the company with his wife, Laura and together, they employ around 10 people.
Grow America loans: Adams Automatic has turned to Grow America multiple times for funding. In 2009, the company first borrowed $291,000 to refinance debt, then an additional $256,000 to refinance a real estate loan and purchase new equipment. Most recently, Eric borrowed $200,000 to refinance debt and fund permanent working capital.
What was going on at the business before it received its most recent Grow America loan?
We originally came to Grow America looking for loan consolidation and working capital. Coming out of COVID, we had customers extend payment terms and it made it more difficult to operate. One of our long standing customers extended payment terms from 30 to 90 days—we were essentially extending credit to them.
We also needed to fund some new projects we had coming in at the time. Two or three existing, smaller customers were bringing new work to us, and we also brought on an all-new customer.
What changed in the business after you received your loan? How were you able to meet your goals?
We added 10% in revenue just from onboarding the new customer. This particular customer’s work is higher margin—they’re good for the business as they supply the material, and we just incur labor costs and machine time going into it. While these new projects might not be as large their payment terms are reasonable, which is helpful for our small company.
What was different or unique about borrowing with Grow America?
Andre [my loan officer] worked with me closely and led me in a great direction that I wasn’t originally planning on going. I don’t know if I would have done that without his assistance and the conversations we shared.
My original intention was to get payables taken care of so that I could boost sales and move forward. Andre told me that was a “Band-Aid,” and after thinking about it he was right—it was not a long-term solution. He really helped me develop a long-term plan for the business as part of the loan process.
Although this is my first loan with Grow America, it’s actually the third time that Adams Automatic has worked with them. They helped the previous owners buy out the business and purchase the property it was on. We also worked with them on a loan for equipment acquisition and debt consolidation. I already knew a couple of the people we worked with on this loan. Grow America has been very helpful to the company in the long run.
What’s your #1 piece of advice for other small business owners right now?
For me, it’s important to contact and have open and honest conversations with other professionals in the field. They can help you take an honest look at your business and your plans moving forward. They can help you see if your business model over time is what’s going to help you succeed and makes the most sense for your company and its situation. I’ve worked with a lot of different professionals over the past several years, including the team at Grow America.
If you’re interested in leveling-up your business with access to affordable and flexible financing, contact us today for a free one-on-one consultation.