Rudy and Wane Marmello opened Rudy & Sons in 1977. Over the next few years, the company began to acquire several gas, convenient store and car wash locations throughout the Lehigh Valley. Rudy’s now operates twelve gas stations and car washes. It is also a Gulf distributor and Stone Soap Solutions distributor. In 2009, Rudy’s decided to transition from retail to wholesale at select sites. Its existing bank was not receptive so they needed to find another source of capital.
How did Multifunding help Rudy & Sons?
Rudy’s needed to refinance the debt on several of its properties. The existing note holder was not interested. It was important to Rudy to be able to maintain a banking relationship that it had established with another institution (not the note holder). We presented Rudy’s with two term sheets- an SBA loan and conventional loan. The SBA had a longer term, was flexible on the banking relationship, and carried more fees. The conventional loan had a lower rate and restrictions on the banking relationship. We negotiated with the conventional bank to waive the banking relationship requirement. Rudy’s got a lower interest rate loan, lower fees, and got to maintain its existing banking relationship. It was a win for everyone!