Lethal Performance provides aftermarket parts for cars, helping car lovers keep their cars in good working order and enhance driving performance. Clients of Lethal Performance use their parts to customize their vehicles and make them racing ready. While Lethal Performance's owners know cars, the company needed help with some of the operational aspects of running a business. Through their relationship with PNC they have been able to gain new knowledge and work smarter.
Prior to working with PNC, Lethal Performance had its banking relationship split across several providers, but as a supplier of a broad and deep inventory of auto parts and other vehicle add-ons, they are a frequent purchaser and were often hitting their borrowing limits.
“It got to the point where I was trying to pay off cards every day or talking to the bank more than once a week about raising the limit so that we could maintain our inventory," says Jared Rosen, CEO of Lethal Performance. “Our business was growing very fast, and a small line of credit wasn't allowing us to keep up with demand."
Lethal Performance was looking for a banking partner that could scale the line of credit with the business and offer other solutions as the business grew. By splitting their purchasing program across multiple lenders the company was also at an elevated risk of fraud. Lethal Performance was looking for a way to lessen vulnerabilities and improve risk management.
Lethal Performance was already working with PNC for retail banking and got introduced to commercial banking through a local branch manager. From that conversation, PNC was able to create a package that consolidated Lethal Performance's purchasing card program into one card program with a commercial line of credit. PNC also onboarded Lethal Performance to its commercial banking platform and was able to work with the company on Paycheck Protection Program (PPP) loan funding as well as treasury management solutions to streamline the banking relationship and create funding options that would grow with the business.
PNC also worked with Lethal Performance to help formalize its business structure by developing an advisory relationship with the management team. The relationship manager was able to help the company start thinking about future growth by explaining the value of bringing on a CFO.
Since moving over to PNC, Lethal Performance has been able to do business without worrying about running into credit limits, and their revenue has more than doubled. The team is also considering moving to a new facility to support its larger inventory needs and has worked with PNC throughout for its purchasing card program, merchant services and treasury management. PNC also provides merchant services support for online and telephone orders placed by Lethal Performance's customers.
“Admittedly it took me a minute to learn everything," Rosen says. “The PINACLE® platform is different from basic banking. But our relationship manager has been very helpful and once we learned how to do it, the business is running more smoothly. We aren't running into issues with our vendors and we feel like PNC is willing to work with us if we have additional needs."
The PINACLE® platform is different from basic banking. But our relationship manager has been very helpful and once we learned how to do it, the business is running more smoothly. We aren't running into issues with our vendors and we feel like PNC is willing to work with us if we have additional needs.
— Jared Rosen, CEO, Lethal Performance
PNC has also established an advisory relationship with the team at Lethal Performance to help them think through their expansion plans. “We're looking at a new facility," explains Rosen. “We haven't made the move yet but it's been helpful to talk through that and get the financing perspective on what makes sense."
With PNC, Lethal Performance has been able to achieve the following:
- Consolidate five purchasing cards down to a single card program with a large credit line
- Maintain and grow positive vendor relationships and double revenue
- Handle online and telephone orders with PNC merchant services
- Formalize treasury management and improve internal controls, invoicing and inventory management by running everything through a single portal
- Reduce fraud risk by bringing all purchasing into a single, protected payment card program