Engine of Growth

Submitted by: Regions Bank

Leonard's Inc is a longtime client of Regions Bank. Through conversation with the owners of the business we uncovered the fact that they were financing purchases, and working capital through a combination of credit cards and leasing arrangements with extremely unfavorable terms. We scheduled a CashCor conversation to get a better understanding of the total financial picture of the company and try to find ways to reduce the credit expense of the business. Once in the conversation we learned that the goal of the business owner is to become completely debt free in the next 7 years. This would allow the owners to arrange for the sale of their company in a way that would help them support and supplement their retirement. Unfortunately, the way the company was structured financially it would have been impossible for them to reach this goal. We prepared a plan in which all consumer and business debt would be retired in the desired time frame while simultaneously reducing monthly cost to the our client. The extra cash they are now saving can be redeployed to increase retirement savings.

Additionally, we helped talk our clients through their business operations. We found that there were ways they could decrease other expenses by altering their hours of operation. They identified shifts that  were costing the company money simply by opening the doors. By reducing the hours of operations to lunch only Sunday through Thursday,  Leonard’s was able to reduce labor and utility expense while somewhat reducing wear and tear on air conditioners, equipment etc. The company is noticing a minimal impact on gross revenue while the cost savings are going straight to the bottom line.  

Leonard's Inc is one of many cases where we have established a position as trusted advisor for our client through meaningful CashCor conversation. We have significantly improved the financial position of this company which will allow it to continue to provide employment that contributes to the lives of greater than 40 families in the Memphis area.