As published in Toledo Business Journal - February 1, 2019

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Need A Ride? uses microloan to support business

An important source of financing for smaller businesses involves microlending. In northwest Ohio, the Toledo-Lucas County Port Authority works with the Economic & Community Development Institute (ECDI) to provide microloan options to small businesses in the area.

“The ECDI microlending program provides capital to entrepreneurs who are unable to obtain financing through traditional sources,” said Craig Teamer, finance and special projects manager for the Toledo-Lucas County Port Authority. “In addition, the program offers coaching and training programs to ensure these companies succeed and remain profitable. Since 2013, the microlending partnership between ECDI and the Toledo-Lucas County Port Authority has distributed more than $1 million to 43 businesses.”

The maximum ECDI loan amount is $350,000 and the maximum borrowing term is five years.

Need A Ride? Transportation Company, a Toledo-based company, utilized a microloan to provide financing for its business.

The company began in 2009 doing business as Talent Travels, the brain-child of co-owner Yolanda Durden who previously worked as a recruiter for a small business in Toledo. She saw the transportation challenges for her potential candidates during the interview and on-boarding process and thought, “What better way to help the people of the city than to have an option to get them to work at a reasonable rate.”

The company launched a flat rate transportation service with one minivan and one driver. What they discovered is that people getting back into the workforce didn’t have money to pay for transportation, even if it was at a great rate. Learning that it could not sustain its business focusing on random on-demand calls, it looked into contract work.

Roye Durden, Jr., husband, co-owner, and full-time clinical therapist, suggested looking into government-funded transportation opportunities.

The name changed to Need A Ride? Transportation Company to make it easier for potential riders to remember, and upon applying for and receiving a contract with Lucas County Job and Family Services, Need A Ride? Transportation began to grow. With two minivans and several private pay customers, it was on its way to break even status.

When speaking of the microloan financing, Yolanda said, “ECDI funding was initially used to fund the business as it grew by obtaining contracts. We were able to secure a larger loan that helped with upgrading our equipment to improve the type of service we offer and it was critical to our business. The cost of insurance, vehicle maintenance, and daily operating expenses would have not been covered by our initial income alone.”

She also noted that the ECDI, in partnership with the Toledo-Lucas County Port Authority, has been very supportive by offering training and resources that help to improve how it does business.

“From QuickBooks to small business marketing training, they are always available to assist with all aspects – not only fiscally – and are a phone call away,” said Yolanda.

Currently, the company has seven vehicles in its fleet and one-way or two-way service is provided seven days a week. Services include providing rides to Detroit Metro Airport, non-emergency medical transportation, as well as offering companies ride service.

“Need A Ride? Transportation offers companies the opportunity to improve staff recruitment and retention. We offer employees the benefit of being on time and improved attendance which increases morale. Since transportation is often an issue, Need A Ride? Transportation has assisted companies outside of public transportation routes with getting their employees to work. We have been very successful partnering with staffing agencies as well as with manufacturing companies who need staff people to keep production going. We transport individuals for first, second, and third shifts, including weekends,” said Yoland.

The business helps companies in Toledo, Maumee, Oregon, Sylvania, Holland, Perrysburg, Walbridge, Northwood, and Rossford, traveling up to 50 miles outside of the Toledo area to keep production lines running smoothly, noted Yolanda.

“Many individuals have been hired on permanently due to having an excellent attendance record because of our service,” said Yolanda.

When offering advice to potential small businesses seeking financing, Yolanda concluded with: “Remember that if you must borrow, you must have a repayment plan. It is best to apply for a line of credit when you don’t need it. When you need funding and don’t have it in any form, it may be too late. Save as much as you can for those times when emergencies come up and need to be funded quickly. Work hard and be willing to tweak your product or service to meet the needs of the customer. Listen to your customers and your staff, as they will let you know what your product or service is worth in the marketplace. Do your research, find resources – free if at all possible – and save, save, save, and save some more before you launch your business and after you have it up and running safe. There is always profit by being a solution.”