Desco Dental Improves Workflow Following SBA 504 Building Purchase
TMC's SBA 504 Loan Program enables small business owners like Tony Vigil, to buy commercial real estate and other fixed assets at below-market, long-term, fixed interest rates. SBA 504 loans include down payments as low as 10% so business owners can retain precious working capital.
SACRAMENTO, Calif., Aug. 25, 2021 /PRNewswire-PRWeb/ -- Family-owned Desco Dental Equipment Service Company got its start back in the 1980s. Now on its second generation of family ownership under Tony Virgil it provides the highest quality in dental equipment, service, and repair to the Greater Sacramento area.
When it comes to opening, expanding, or maintaining a dental practice, Desco Dental Equipment is a one-stop shop. It provides dental chairs, stools, X-ray and digital imaging equipment, handpieces, lights, and more.
While Vigil had been fine leasing space for his business for the past several years, his rent started to increase significantly. Landlords were driving hard bargains and he was concerned about operational efficiency. Vigil was finally motivated to make the switch from tenant to owner.
With an office, a storage facility, and a standalone showroom in all different locations, staff members spent hours traveling from site to site. When doctors would visit to inspect their products, it seemed like necessary literature and equipment was always somewhere else.
"Having several locations caused confusion. We want our customers to see our business running efficiently - and that is hard to showcase with our operations divided," proclaimed Vigil.
TMC Financing's SBA 504 Loan Program Helped Desco Dental Replace Three Leased Locations at a Savings
Tony Vigil wanted to bring all three of Desco's facilities together into one centralized, organized location. He knew purchasing one consolidated property for his business would improve the company's efficiency, productivity, and even its reputation.
However, he was unsure whether it was feasible to acquire the necessary financing. His real estate agent recommended that he connect with TMC Financing (TMC) about the accessible and affordable SBA 504 Program.
TMC's SBA 504 Loan Program enables small business owners like Vigil, to buy commercial real estate and other fixed assets at below-market, long-term, fixed interest rates. SBA 504 loans include down payments as low as 10% so business owners can retain precious working capital.
Tony Vigil started the SBA 504 loan process in 2019, and throughout the pandemic, Jim Azevedo, senior vice president, who facilitated the deal on behalf of TMC Financing, helped him stay on track.
"Lease prices in the Sacramento Area are extremely competitive," Azevedo states. "For a company like Desco, to be able to stabilize their occupancy costs for the long term is crucial. Instead of throwing money away leasing multiple locations, Tony is now building equity with each monthly payment."
By utilizing the SBA 504 loan program, Vigil was able to purchase a 2,516 square–foot industrial condo with only a 10% down payment at a below-market interest rate fixed for 20 years.
Desco moved into its new location on June 1, 2021. The property is everything Vigil hoped for. Desco has room to expand its headcount without any change to infrastructure, they can safely park its vehicles indoors at night, and they are a part of a wonderful community with other businesses in the neighborhood.
The staff loves the new location, too.
"I definitely see an excitement and a boost in staff moral with the new facility, everything's sort of fresh and bright and clean," explained Vigil.
Would Tony Vigil recommend TMC Financing's SBA 504 loan program?
"Oh, absolutely!" Vigil said with a smile. "I've told many of my small business owner friends about the program. I never thought owning our building would be affordable or doable, but with the 504 Program, it was."
Looking back, Vigil explained that TMC Financing's SBA 504 Program was the perfect financing option:
"It's the whole package. Not only was the down payment affordable, but the terms of the loan were unbeatable. Our rate is fixed, so our occupancy costs are not going to fluctuate and surprise us five or ten years down the road. I'm very glad I chose this program and if any business owner has that opportunity to take advantage of it, I would wholeheartedly recommend it."
To learn more or get started, contact TMC Financing.
Media Contact
Amanda Near, TMC Financing, 4156555420, [email protected]
SOURCE TMC Financing
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