Better Cleaning Systems, Inc. was organized in Santa Barbara in 1975 by Bill Hachtmann. The company, which goes by the name of “Kleenrite”, relocated to Madera in 1992. Kleenrite manufactures upholstery and carpet cleaning equipment for commercial users. Customers include Chem-Dry domestic and international franchisees, as well as other manufacturers of carpet cleaning equipment. Kleenrite spends a considerable amount of capital on research and development in order to stay ahead of the technology trends in the commercial cleaning industry.
Kleenrite approached their bank late in 2011 to obtain additional funds to launch a new industrial carpet cleaning machine that mounts in a vehicle. The existing technology cost customers about $40,000 for a truck and the associated equipment. Kleenrite was able to develop a new machine with a total cost of $6,000 for the buyer and a better operating efficiency than the existing system. But the company exhausted its working capital developing the new machine and now needed the cash to manufacture and market it. With the help of an 80 percent California Small Business Loan Guarantee through their local Financial Development Corporation (FDC), Kleenrite’s bank was able to provide them an asset-based revolving line of credit.
The new machine launch occurred in October of 2012. Kleenrite has seen increased profitability associated with the increased sales and has hired more employees to keep up with demand. The company expects the new machine to increase its sales by 30 percent annually.
Citizens Business Bank
CBB Financial Center
Valley Small Business Development Corp.
California Small Business Loan Guarantee Program