Silo delivers a tailored combination of Capital and Technology solutions to help the new owner of New Asian Tropical begin a thriving new chapter for his business.
Case Study
Rewrite your story with a tailored blend of capital and technology.
“New Asian Tropical is a smaller company, but Silo makes me feel like we are their most important customer. I feel like a partner.”
Patricio Espinosa
Owner and CEO at New Asian Tropical Produce
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New Asian Tropical
New Asian Tropical is a produce wholesaler shipper importer proudly based in Homestead, Florida that brings tropical produce varieties from Ecuador, Peru, Central America, and the Caribbean to their American community. They prioritize supporting their employees, trust and honesty with their business partners, and generating lasting value for their producers. Ultimately, they seek to positively impact their community and reduce their environmental impact over time.
Location
Homestead, Florida, USA
Team Size
20
Their Goals
As they look to the future, New Asian Tropical is excited to expand and innovate. Patricio, new owner and CEO, ultimately wants to bring more products from Ecuador, his home country, to the rest of the world. New Asian is excited to develop more retail partnerships and expand the New Asian Tropical brand, as they continue to create opportunities for their employees and invest in their community.
Special ingredient to share
Eddo
Crispy Eddo Fries
Ingredients
- 1 lb. (450g) eddo
- 2 tablespoons olive oil
- 1 teaspoon dried oregano
- 1 teaspoon dried thyme
- ½ teaspoon garlic powder
- 1/8 teaspoon cayenne pepper (optional)
- Sea salt, to taste
Instructions
- Preheat the oven to 425°F (220°C). Line a baking sheet with parchment paper.
- Trim the ends of the taro root and peel it.
- Cut eddo into fries. Rinse and pat dry. Transfer the fries to a large bowl. Add the olive oil and all the spices except salt and toss well to coat.
- Arrange the eddo fries in a single layer on a parchment-lined baking sheet and bake for 30 minutes, until golden brown, flipping halfway through.
- Sprinkle with sea salt while warm and enjoy.
New Asian Tropical leverages a blend of Silo Capital and Silo insights to Boost Profit Margins
The Challenge
During the Covid 19 pandemic, Patricio Espinosa purchased a produce wholesale business called New Asian Tropical in Homestead, Florida. Just as with every other business in the produce industry, New Asian Tropical had faced financial challenges during the pandemic that ate into their profit margins and required them to take on debt. Patricio was an experienced entrepreneur with a vision for how he wanted to transform and improve this business but to do so, he needed insights into his operations and access to the working capital necessary to take action.
The Solution
New Asian Tropical applied a combination of Silo tools to reform their business and rebrand themselves under Patricio’s new leadership. Silo Cash Advance was first used to settle old bills and reignite relationships with suppliers. Once cash flow was stabilized, Patricio used Silo Cash Advance funds to negotiate better rates with his suppliers and grow his profit margins. At the same time, Silo’s Inventory Management and Accounting software was deployed to replace an old, costly system, and deliver the essential sales reporting Patricio needed to make the right buying decisions.
You get better rates with suppliers when you pay quickly or upfront. Silo Cash Advance gave us the ability to pay quickly and reduce our costs to suppliers.
The Results
Increased profit 9 percentage points
A prescriptive combination of Silo Cash Advance funding and the Silo software’s sales reporting helped Patricio expand his profit margins seamlessly. With the right tools, he had new confidence in the decisions he was making for his business and the funding to take necessary action.
Successful reform and rebrand of a newly acquired company
Silo Cash Advance was used to stabilizeNew Asian Tropical’s cash flows by bringing the business up to speed on supplier payments and other expenses. Once the financial foundation was secure, they began to free up funds to invest in expanding their brand.
New inventory management and reporting tools
Silo’s cost effective Inventory and Accounting software solution replaced New Asian Tropical’s old costly inventory system that failed to give the business the organization and actionable insights it needed to thrive.
Read the Full Story
New Asian Tropical Reinvents itself with the right blend of Silo tools
As the economy shifted during the Covid 19 pandemic, Patricio Espinosa sold his flower growing operation and purchased a produce wholesale business called New Asian Tropical in Homestead, Florida. Like many other produce industry businesses, New Asian Tropical had struggled to manage the economic volatilities brought on by the Covid 19 pandemic and faced some persisting problems as a result. As an experienced entrepreneur, Patricio saw an opportunity to rebuild and redefine the business under his new leadership and was excited to get started.
Hidden costs and thinning margins
Patricio began to do everything he could to learn the ins and outs of New Asian Tropical in order to address existing issues and bring the business to its full potential. First and foremost, old debts and outstanding AR that had accumulated under the previous owner appeared to actively stunt New Asian Tropical’s cash flow. Until it was addressed, New Asian Tropical would have to delay critical payments to suppliers who would in turn impose higher prices on them.
As Patricio continued his work to understand New Asian Tropical’s needs and financial health, he found little help within the old inventory management software that New Asian Tropical had used previously. Reporting tools that Patricio needed to understand the business’s real costs weren't available and the software provider appeared “very money focused - they charge for everything,” explained Patricio. “They even charged for a customer service call. They wouldn’t help us solve our problem unless we paid them first.”
It became clear to Patricio that these avoidable costs and a lacking software experience hindered New Asian Tropical’s ability to stabilize and prosper.
As an experienced entrepreneur, Patricio knew that it would take a significant amount of working capital to make good on old debts, root out needless costs and optimize operations for a better future.
As fate would have it…
Before selling her business to Patricio, New Asian Tropical’s previous owner had made contact with Silo, a financial and technology solutions provider. Not long after Patricio took the keys, he received a phone call from Silo that would soon help him put New Asian Tropical on a brighter trajectory.
During a consultation with Silo’s refreshingly friendly team, Patricio and Silo’s capital experts worked together to develop a prescriptive plan for New Asian Tropical’s unique needs. Silo’s Inventory Management and Accounting software suite was ultimately applied to help Patricio gain the organization and transparency into his business that he needed, while Silo Cash Advance funding was provided to help Patricio take action right away.
Together, these Silo solutions would become the perfect remedy for reinvigorating New Asian Tropical as a business and meeting their potential.
With Silo’s Sales by Product report, I can see how much we sell and how much it’s costs us to sell it. Silo gives me the real cost of something.
The sun rises on a new era for New Asian Tropical
Silo Cash Advance funds were disbursed at lightning speed and immediately helped Patricio pay off the debts that had accrued under previous ownership. Without the weight of debt, Patricio could free up cash flow and use Silo financing to improve his supplier relationships by paying up front and securing discounts on his purchases.
You get better rates with suppliers when you pay quickly or upfront. Silo Cash Advance gave us the ability to pay quickly and reduce our costs to suppliers.
Suddenly, Patricio saw his profit margins begin to grow.
Back in the office, Silo’s Inventory Management and Accounting software was helping to streamline New Asian Tropical’s operations and give Patricio sales reporting insights that helped him take the right actions for his business. “If I have the wrong information, I make the wrong decisions,” Patricio explained, highlighting the value of having the Silo software as an active tool in his buying and selling decision-making for New Asian Tropical. “Like with green plantains - Silo’s insights showed me that I was spending a huge amount of money for not much profit.”
Patricio’s leadership team began to use these insights to identify and eliminate unnecessary costs, which ultimately expanded their profit margins even more.
Patricio was grateful. Silo had not only proven to be a multifaceted and cost-effective business solution, but it became clear that they were backed by a team of experts that actually cared. “When we need something, Silo gives us their time. One hour, two hours, whatever we need. New Asian is a small company but Silo makes me feel like we are their most important customer. I feel like a partner.” Unlike New Asian Tropical’s previous software provider, a Silo partnership ensured New Asian Tropical could benefit from endless product improvements and access fast, personalized assistance at no additional cost.
