Furniture manufacturer builds a bigger future with help from UPS Capital 

With financing in place, Karen Wood (pictured) and business partner Donna Fargo tripled their customer base. 

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Donna Fargo and Karen Wood knew they didn't know much about making furniture when they bought Lake Country Woodworkers in 1994.

As managers of rental properties and banquet facilities in upstate New York's Finger Lakes region, they knew about making customers happy for vacations and special occasions. But office furniture?

"I didn't even know what a credenza was," says Wood.

More than a decade later, Wood and Fargo can talk shop with the best of the company's woodworkers at the Naples, N.Y., plant that manufactures high-end office furniture. And more importantly, the company has tripled its customer base and doubled its operating capacity.

Most of the credit, Wood says, goes to "an excellent group of employees. Our staff is fantastic and dedicated and helped us learn what we know today."

The business partners also credit UPS Capital^® for helping the company restructure its debt for a solid expansion that enabled the company to revamp its plant, update operations and increase cash flow.

"It helped us get solid footing," says Wood of UPS Capital's efforts. "And they really serviced the account."

Switching gears
The story of Wood and Fargo echoes the spirit of tens of thousands of other entrepreneurs. The business partners liked their jobs, but the thrill was gone. Frigid temperatures that shrank tourist numbers around the Finger Lakes during winter didn't help, either.

"We wanted something that wasn't seasonal," Wood explains. Once the pair saw the potential, they "kicked off our high heels, put on our work boots and learned the business," Fargo says.

The women changed marketing strategy. To expand, they chose to pursue dealers and become an OEM (original equipment manufacturer). This required operational changes and also changes to their facility, which had previously been a three-story winery. The new volume required more space to increase the veneer department's throughput and expand the finishing capacity. And the company's finances would benefit from restructuring.

An unexpected partner
A long-time banker friend recommended UPS Capital to help the company refinance and work through the financial transitions. In conjunction with the Small Business Administration, UPS Capital was able to offer longer loan-repayment terms to the company. Wood was surprised to learn that UPS Capital and its lending services even existed.

"That would be the number one shocker," she says.

She was even more surprised to learn about the range of services and follow-through offered by UPS Capital.

"I just didn't have any idea that with the big UPS name, I could get the small-town service and help that we needed," Wood adds.

In addition, UPS Capital provided services in the same professional manner that Wood and Fargo provide to their own customers.

"We can accommodate a customer's needs at the drop of a hat – which are the same qualities we sought in our new financial partner," Wood says.

When Wood's husband had to have surgery, Wood and Fargo were forced to temporarily put the debt restructuring and expansion on hold. That was no problem.

"They just kept the file open, and started right over when I was ready," Wood says. "They've been great."

As it did for Lake Country Woodworkers, UPS Capital can help your business enhance its cash flow and manage risks as you expand or restructure, or both. As the financial services arm of UPS, UPS Capital works extensively to secure loans with the U.S. Small Business Administration, as well as the U.S. Department of Agriculture and the Export-Import Bank. Learn more at upscapital.com.

This article was originally published under the headline "Carving out a new calling" in the Summer 2007 print edition of Compass.