-The 2008 decline of the auto industry forced SONUS to look beyond traditional lenders for a line of credit
-Growing fast after the economic downturn, SONUS needed access to stable financing solutions
-When the company returned to profitability, SONUS chose to stay with Hitachi due to loyalty and convenience
SONUS was purchased by members of the company’s senior management team and heading for tremendous growth. When the Great Recession rolled around in the late 2000s, they were one of the companies impacted by the economic downturn. The Recession stopped the growth from taking place, leaving the company in need of a strong line of credit. SONUS turned to traditional lenders, but no one would approve them for a line of credit due to the instability of the market.
A long-standing relationship between Tim Droege, president of SONUS Engineered Solutions, and Mike Semanco, president and COO of Hitachi Business Finance, brought Tim to Hitachi in this moment of near-financial crisis.
With a line of credit that started at $1 million, they were able to successfully launch new programs in 2010.
“That $1 million line was much, much better than surviving off of our receivables,” says Tim. The first contract was signed in only a matter of days and allowed Tim and his company to take advantage of the returning automotive market.
As the U.S. automotive industry began to cycle back around at the turn of the decade, SONUS started to make a comeback. With strong financial stability and an even stronger management team, SONUS was back on track.
The line of credit provided by Hitachi grew from $1 million in 2009 to $7 million today. The boost of cash flow allowed SONUS to re-enter the market with confidence and the ability to compete and make it out of the Great Recession. Although SONUS was again being approached by banks in 2014, they decided to remain with Hitachi Business Finance out of “reliability, convenience, and loyalty.”
The relationship between SONUS and Hitachi has remained solid and consistent since that $1 million loan back in 2009, and is expected to remain that way for years to come.