Case Study:
Poly Foam, Inc.

Company Profile

Their products are all around us—under runways, in flotation devices, in your favorite stadium, even within the walls of your building. Since 1960, Poly Foam has manufactured foam-control expanded polystyrene (EPS) for protective packaging, OEM parts, insulation applications, roofing, geofoam and flotation applications. They also fabricate polyethylene, polypropylene, and polyurethane flexible foams.

The company serves a diverse customer base with a focus primarily in the Upper Midwestern states of Minnesota, Iowa, Wisconsin, North Dakota and South Dakota. Its 135,000 square-foot manufacturing and warehousing facilities are located on 6.5 acres of land in Lester Prairie, Minnesota.

The company is committed to engineering quality products, environmental stewardship and building lasting business relationships.

Situation

When Bill Rogers stepped into the CFO position at Poly Foam, he established a relationship with a local bank. Poly Foam remained a customer of the bank for many years; however, due to consolidations within the banking industry, it became apparent that they were probably no longer a good fit for Poly Foam’s business.

The clear sign for change came when two of Poly Foam’s largest customers changed their payment terms. To meet these terms, Poly Foam would need to expand its line of credit. The bank was unwilling.

Meanwhile, Alerus Financial commercial bankers Chip Norris and Dave Latta had been checking in with Bill on a regular basis, so it was only natural for Bill to give them a call to discuss his commercial banking needs.

Solution

Alerus Financial was able to expand Poly Foam’s line of credit, allowing the company to sustain operations under its vendors’ new business practices.

As Chip and Dave further assessed the needs of Poly Foam, they found other ways to streamline its financial practices and save money. For example, Alerus suggested transitioning Poly Foam’s costly lock box operation to a remote deposit service. The remote deposit service better fits Poly Foam’s needs. And, that one suggestion alone saved the company thousands of dollars.

Bill also appreciates the personal attention. “They’re positive, knowledgeable and very, very helpful. If we have a question, the Alerus team gets back to us right away.”

Even when the conversations aren’t easy, Bill sees the positive nature of the partnership. “Shortly after beginning our banking relationship with Alerus Financial, we had a self-inflicted problem. An employee made a mistake that could have created a potential short-term problem, especially in light of our new banking relationship,” says Bill. “I explained the situation, and my Alerus people said, ‘Don’t worry about it; just explain it in a letter, send it in, and we’ll take care of it.’ Those kinds of things really help solidify our relationship.” 

 

 

 

 

Poly Foam, Inc.
Lester Prairie, MN
www.polyfoaminc.com

Business Type

Manufacturing

Services Used

Commercial Banking
Business Checking
Business Line of Credit
Remote Deposit   

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