During the early 1990's the U. S. Postal Service commenced sorting mail on high speed mail sorting machines to make the postal service more efficient.  The postal service was incapable of processing their high volumes of mail without also employing the services of outside mail processing firms.  The postal service used these outside vendors to sort their mail.  In the late 1980's the postal service offered a discount off from normal postage rates for pre-sorted mail.  This provided the basis for offering a discounted postage price for high- volume mailers to use an outside vendor to presort and barcode the mail.  The benefit to the customer is cheaper mailing cost, the benefit for the postal service is faster sorting and delivery through the postal system.  

Our client became aware of the opportunity and wanted to participate.  We prepared a detailed business plan to be used to acquire initial investors and support an SBA Guaranteed Loan.  Our client raised equity under the Washington ULOR law that allows small business to sell equity on a limited and defined basis.  The equity raised, along with the principal's capital, provided sufficient equity to secure an SBA Guaranteed Loan to acquire the initial capital equipment and support the initial operating losses.  The initial transaction was $575,000 and established a single high-speed sorting line.

Today the client operates four high-speed sorting lines and provides additional services in the form of custom printing, mail folding, envelope stuffing and other custom laser printing services.  Revenue has grown to $13 Million and the business is highly profitable  It now funds expansion from internally generated cash.  Our client dominates this business segment in Seattle, Washington.

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Last Modified:  April 17, 2006