Nasario is a minor player in the North American Car Restoration Industry. He does not travel to the U.S.A. to purchase crashed cars nor does he sell the cars once they have a fresh coat of paint over the area where there previously were dents. He and his employees are the cheap labor that makes this industry possible.
Mr. Nasario is contracted by the person who imports and sells the damaged cars. He is hired make the car look like new. Currently he can do paint jobs and smooth out dents, but does not have the equipment to straighten car frames.
When he has to straighten a car frame, Mr. Nasario must haul the car to a workshop and rent time on the machine. For small dents the cost is $100. When members of the Honduras Pella Affiliate visited Mr. Nasario in early April, he showed us a machine that he could purchase used for $1325.
Our next question, "How often do you rent this machine?"
Answer, "At least 10 times a year."
Mr. Nasario is paying at least $1000 per year to rent usage of the machine (if all ten cars only have only small structural damage). It is fairly safe to say that he has rental costs around $1250 per year.
One possible solution: purchase the machine.
The whole story is that Mr. Nasario rents the space where he works and the machine that he is looking to purchase needs to be anchored in the ground. The investment in the workshop floor is risky since Mr. Nasario could be forced to leave the rented space (and $150 investment in the anchoring the machine) if the owner so desired.
What Mr. Nasario needs is a business mentor who can walk with him while making these decisions. Partners Worldwide has seen businesses grow with the loans that the business owners receive. Business growth, however, seems to take place when there are business contacts, knowledge of markets and good advice. Loans can be a tool to help growth, but only after a good plan has identified where the funds will be invested.
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