Entrepreneur Chris Thomas took a big leap during the pandemic. While the rest of the world was huddled up in lockdown, Chris started his own refuse-hauling business, CJ’s Refuse Hauling, serving Springfield and Clark County. Since then, he’s been doubling his revenue every year, fulfilling a need in the local market.
While the revenue was strong and growing, so were his equipment needs. Chris had bought used garbage trucks at an affordable price, but he quickly learned how often these trucks needed service. Every time a truck would break down, his labor cost would go up, as he needed more hours on other trucks. It was a painful cycle that was disrupting his cash flow. At the same time, new garbage trucks were expensive, and much of his operating capital was being spent on dumpsters, toters, dump fees, and so much more. Cash was tight.
Chris’s banker Sabrina Tackett at New Carlisle Federal Savings Bank was familiar with the Rotunda Fund, and referred Chris to the Entrepreneurs’ Center, where he pitched EC Angels for a Rotunda Fund investment.
The Rotunda Fund offers companies with revenue a revenue-based investment. Instead of taking an ownership stake in a company, a revenue-based investment allows the business to pay back the investment over a period of time with a monthly percentage of revenue.
With a Rotunda Fund investment, Chris was able to purchase a new truck, keep full ownership of his company, and continue to grow his business.
Want to learn more about the Rotunda Fund? Apply here or contact Kim Frazier.