Merchants Fleet - Achievement in Management
Company: Merchants Fleet
Company Description: Merchants Fleet is the nation’s fastest growing fleet management company, providing flexible funding and service options for organizations that leverage vehicles to run their operations, serving as a single source for all vehicle needs, including electric vehicles. Merchants Fleet is headquartered in Hooksett, NH, with an Innovation Center in the Chicago, Illinois, area.
Nomination Category: Management Categories
Nomination Sub Category: Achievement in Management - Financial Services
Nomination Title: Jack G. Firriolo, Merchants Fleet Vice President & Chief Credit and Risk Officer
Many Merchants Fleet clients were among the millions of US businesses hit hard by the dramatic unemployment levels and low consumer spending during the pandemic.Jack G.Firriolo,MerchantsFleet Vice President & Chief Credit and Risk Officer knew he needed to act quickly to help our fleet clients who were struggling to meet their lease obligationsin the face of new economic uncertainty.Many of these businesses fit in the essential business categories, and their functions were needed in order to keep America moving—companies in the energy, delivery, infrastructure industries and similar.From day one,Jack knew that this was more than just about finding payment deferral solutions- this was an opportunity to show our fleet clients that Merchants is a true long-term partner, and that we would be part of their journey to financial recovery.
Jack worked with the Merchants leadership team to create a “Tough Times Playbook”,which included a structured new process for early detection of high-risk clients hit hardest by the pandemic.This allowed theJack and his Credit and Risk team to step in and provide relief early on, withre-structured terms,payment deferrals, de-fleeting and lease-back options designed for clients in financial distress,without any negative impact to their good credit standing. For those clients who owned their fleets of vehicles but needed additional capital, Merchants devised a unique program for buying those vehicles and leasing them back to the client, allowing them to get much needed funds during the pandemic. For clients who had leased their vehicles but were suddenly faced with the need for a more affordable way to pay for them, Merchants was able to right-size their fleet and offer alternative options of payment,allowing them to free up essential cash flow.
Focused on keeping our clients liquid,Jack’squick and innovative thinking allowed Merchantsto focus on our existing clients and how we could best serve their needs to stay liquid and lower total cost of ownership during this time.Using the Tough Times Playbook astheirguide, the Merchants teams were abletore-amortize (refinance) more than 1,500 units for over half a dozen credit-qualified clients, driving millions in cash flow savings for them.For many of our essential services clients who were feeling the pinch of the pandemic,thesehelpfulfinancing optionsserved as an economic lifelinethatallowed them to keep their businesses running.Jack’sability to recognize and create theseconvenientfinancial optionsgives Merchants the opportunity tooffer a level of financial scalability and customization that is unique to the industry.
Merchants Fleet had 15,000 delivery vehicles on the road during 2020’s peak season, a 142% growth year-over-year. The company also achieved the following growth milestones:
- 257% Revenue growth in Last Mile segment
- 15% Increase in Traditional Leasing programs vs the same period last year
- The business has grown 46%
By the end of the year,Merchants had only 2 clients remaining on deferral,which representsless than 1% of all clients who were on deferral,and we continued to help others to stay ahead of turbulent times.To keep our clients informed of their new financing options, we ramped up our communications with them daily, and technology- enabled several new functions for them along the way.
Because of Jack G.Firriolo’s out-of-the-box thinking, Merchants was able to provide necessary financial assistance to hundreds of businesses at a time when they needed it the most.
We are grateful for Jack’s incredible hard work and perseverance during one of the most challenging economic downturns in recent history, and we know that as a result of his innovation, our clients know that they have a long-term partner with Merchants Fleet.
-$55 Million of Growth Financing from Bain Capital Credit
-Successfully worked with over 200 at-risk clients for a managed deferral outcome
-Prevented more than $2.5 Million in losses through successful client payment restructuring
-Supported over $350 Million in new growth
-Improved health of overall portfolio by offering new financing options