It felt like Renovations Sans Limite was stuck in a holding pattern. The Quebec-based home renovation company was certainly generating business and securing home renovation contracts. Yet, it was missing out on many of the more profitable, larger jobs because it couldn’t offer financing. This was hurting revenue and impacting growth. It was turning into a serious problem for owner Steve Benoit, preventing him from growing his company the way he envisaged. It was a problem he would often consider as he weighed up what financing option would best suit his business. What financing option could help him break the cycle.
Building a Renovation Company
Renovations Sans Limite is a home renovation company that focuses on roofing, cladding, HVAC and insulation work. Prior to financing it generated an annual revenue of a couple of million dollars – no small feat – but was struggling to grow beyond this point. Steve said they were having no trouble securing smaller contracts for roofing and tiling work but often missed out on larger, more lucrative opportunities. “For a roof, for contracts of $5,000 to $6,000, customers could pay us with a cheque,” Steve said. “But it was hard for me to get some big contracts. We would miss out on business because we couldn’t offer financing. We were missing out on about 25-30 per cent of our roofing, tiling and residential renovation opportunities.”
A Call to Change it All
Eventually Steve decided enough was enough. He knew financing options were out there, and in particular he knew it was available through a Canadian-based business called Crelogix. It was an option his dad and several industry associates had already recommended to him. He picked up the phone and made a call that would completely change the outlook for his company. Within days he was meeting with a Crelogix district manager at his office on the Fleuve Saint-Laurent in Montreal, enrolling in a program that would give his company access to financing. It was a process that proved easier than he expected. “We liked how Crelogix worked – we appreciated its courteous support staff,” he said. Yet it was also a process that would dramatically grow his business.
Growth Without Limits
The new partnership had an impact practically overnight. The average size of the job done by Renovations Sans Limite grew significantly, allowing Steve to double the size of his workforce within two years of the new partnership. The average contract financed through Crelogix is $15,000 – double the average size contracts being done by the company before it had the option of financing. Steve now has 24 people working for him across two Montreal offices and numerous work sites.
“Right now 60-70 per cent of my business is going through Crelogix financing,” Steve said. “A lot of people don’t have the money right away so when we started offering financing it made it a lot easier for them to make a decision.”This generates an annual revenue of about $3 million of work. It turned out that having financing not only helped secure bigger jobs but secure more jobs. “If I didn’t have Crelogix I would lose 60 per cent of my business, worth about $1 million a year, for sure,” Steve admits.