PH Distribution found a unique financial partnership in Silo–one that could fund their opportunities as fast as the produce industry presented them.
Case Study
Capital that moves at the speed of the produce industry.
“It’s not always about being able to access more capital, but being able to access it faster. Silo’s solutions enable us to control our cash flow.”
Harry Weisman
President, Co-Founder at PH Distribution
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PH Distribution
As a new produce distributor to the Miami produce wholesale distribution space, PH Distribution (PHD) is building a solid brand as energetic, relationship-driven, and creative as its founders, Pedro and Harry. As they work to forge lasting new supplier relationships and expand the ‘individually quick-frozen’ (IQF) portion of their business, PHD is excited to revamp and refine a historically antiquated space by conducting business with three values in mind–transparency, ownership, and collaboration–ultimately delivering a higher level of performance that is as refreshing as the products they deliver.
Location
Miami, Florida
Team Size
3
Their Goals
In addition to steady growth, PHD looks to expand beyond consumer driven spaces of the market and eventually master their very own innovative vertical within the food supply chain.
Special ingredient to share
Cauliflower rice is perfect in stir fries, burrito bowls, fried rice, and more.
Ingredients
1 medium head of cauliflower
For seasoned cauliflower rice:
1 teaspoon olive oil
1/2 cup chopped scallions
juice of 1/2 lime
sea salt and freshly ground black pepper
Instructions
- Make sure your cauliflower is fully dry. Chop the cauliflower into large pieces. You can include the cores, but discard the leaves or save for another use. Place the cauliflower pieces in a food processor and pulse until it has the texture of rice. Work in batches if necessary and don’t over process or it will get mushy. Use in any recipe that calls specifically for riced cauliflower. Continue following that recipe’s instructions.
- If you plan to serve your cauliflower as a side dish or use it in place of regular rice, I recommend lightly cooking it and seasoning it to take off the raw bite. In a large skillet, heat 1 teaspoon of olive oil over medium heat. Add the scallions and cauliflower and sauté until heated through, about 3 to 5 minutes. Season with salt, pepper, and a squeeze of lime juice to help remove any bitterness from the raw cauliflower.
A challenging road filled with financial blockers
The Challenge
In the face of intense competition, PH Distribution, a new distributor to Miami’s produce wholesale distribution space, knew that gaining traction with strategic suppliers would require fluid access to working capital. When exploring various financing options, they found that traditional lending institutes could not offer an experience that worked for them. Rigid and slow underwriting processes repeatedly kept them from securing the funds necessary to meet their time-sensitive demands of each opportunity, ultimately impacting their ability to compete and reach their growth goals. Confident in the value they could bring to the Miami market, they decided to search for a unique financial partner that could meet their business needs and move at the speed of the Produce industry.
The Solution
Through Silo’s capital program, PH Distribution achieved the business growth they had hoped for. With quick access to capital they were able to secure and grow two new supplier relationships that helped them capitalize on market trends yielding an estimated growth of 200% within 13 months. Additionally, Silo’s personalized approach to lending, gave the PHD team the additional confidence that there was no challenge they couldn't face. As they continue to expand their operations and build a formidable presence in the Miami market, Silo continues to be their preferred financial partner.
The produce supply chain is notoriously unpredictable. Growing businesses require financial solutions which are tailored to the unique challenges of this industry and our business. Silo provides both.
The Results
Secured 2 new suppliers and 2 new commodities
In addition to leveraging Instant Pay fill seasonal cash flow gaps across their business, PHD leveraged Silo Capital to secure 2 new suppliers and 2 new commodities that enhanced and created net new lucrative IQF programs.
Increased Volume by 200%
Through their expansion and the creation of their new IQF program, PHD was able to support the infrastructure to move more product than ever before. In 13 months, they were able to increase the volume of the products they moved by 200%.
Doubled Revenue in 13 months
Revenues exploded as new strategic supplier relationships took shape. Within 13 months, PHD saw record sales across their business.
Read the Full Story
A challenging road filled with financial blockers
When Harry and Pedro, co-founders of PH Distribution (PHD), entered the wholesale produce space they immediately faced a challenge. They had the vision, the contacts, and the tenacity it takes to build something special, but growing a business amongst larger, well-established competitors would not be easy. Especially when those competitors had decades of long standing relationships under their belt and bank roll to match.
You grow used to feeling like the underdog as you step into meetings with prospective suppliers," says Harry. “It is a competitive space that is generational. Relationships and access to capital are everything.
Forming new supplier partnerships was challenging as larger competitors were armed with the financial resources necessary to pay up front and/or purchase products at a premium. Even as PHD’s services caught the attention of many well known suppliers, they’d soon find that what was limiting their growth was the rigid, slow paced underwriting process that traditional lending institutions offered.
“It can certainly be frustrating to feel seemingly equipped with everything but the capital necessary to make the deal.” Harry laments. “Banks could not move at the pace our industry required. The way they assess risk doesn’t necessarily match how this industry works or take into consideration the opportunity.”
Banks could not move at the pace our industry required. The way they assess risk doesn’t necessarily match how this industry works or take into consideration the opportunity.
Traditional banks provided a one size-fits-all financial solution which PHD, like others in the perishables industry, found insufficient for their growth and risk-management needs. In the face of a market shift or an emerging opportunity, PHD would often require a sum of capital at a pace banking partners were often unwilling, or unable to deliver.
“The produce supply chain is notoriously unpredictable. Growing businesses require financial solutions which are tailored to the unique challenges of this industry and our business. Silo provides both,” Pedro remarks.
Refusing to let traditional funding constraints impact their growth, PHD decided to find a financial partner that could offer tailored capital solutions at a fast pace for PHD to reach their real potential.
That’s when we realized the financing experience Silo provided was an absolute game changer.
Silo–a new financial partnership with legs
In search for an alternative lender, PHD discovered a unique financial partnership in Silo. With a growing presence as a perishables financial leader, Silo caught their eye. On a mission to provide financial confidence and stable growth to businesses in characteristically unpredictable and competitive industries, Silo was able to immediately demonstrate an understanding of their challenges and offer a range of financial products, software, and services to help PHD in their endeavors.
“Early on in our partnership we needed cash fast to secure a strategic broccoli supplier when the market was booming,” says Pedro. “Silo’s Instant Pay solution gave us the funds we needed to build that relationship practically overnight. That’s when we realized the financing experience Silo provided was an absolute game changer.”
Silo's Instant Pay solution allowed PHD to access their capital, capital currently tied up in invoices, unlocking their ability to capitalize on opportunities and achieve meaningful growth within a short period of time.
The experience that Silo provides allows us to feel in control of our cash flow. It’s not always about being able to access more capital, but being able to access it faster.
Tools like Instant Pay not only bridged their cash flow gaps, providing them with the funds they needed, when they needed it, it also armed PHD with the confidence they desired as they entered into negotiations. “You start to see opportunity everywhere in ways you didn't have the confidence to before.”
You start to see opportunity everywhere in ways you didn't have the confidence to before.
Silo also provided personalized services that were tailored to PHD's unique needs. When a situation arose where the PHD Team needed capital fast, they called Silo and immediately began working together on a solution.
“It feels like a real partnership. We’re not paying extra for the counsel - it's just the kind of organization they are. They want us to succeed and we feel we have their support,” said Pedro.
Through Silo’s capital program, PH Distribution was able to achieve the growth and acceleration they had hoped for. Their ability to further control their cash flow and acquire quick access to capital gave them the ability to forge several new supplier relationships and capitalize on market trends that have yielded an estimated growth of 200% over 13 months.
Additionally, Silo’s personalized approach to lending, gave the PHD team the added confidence that there was no challenge they couldn't face. Silo continues to be their preferred financial partner, as they continue to expand their operations and build a formidable presence in the Miami market.
