Biz2credit Loan ProductsTextile trade company uses $100,000 line of credit to cover cashcrunchA textile trading company has been in business for 3 years. From2006 to 2007, the companys revenue grew by over 400 percent.Unfortunately, the current economic recession has hurt thecompanys cash flow..The NeedWith a limited credit history, the business owner only qualified forhigh-cost private loans. The entrepreneur wanted to refinance theexpensive private loans with a line of credit from a bank to servicethe existing demand and cope with the short-term cash crunch.Financing SolutionAfter reviewing the business challenges and financials of thecompany, Biz2Credit recommended consolidating the companysbusiness banking, shortening the receivables and implementing astructured account payable plan to improve cash flow. This helpedthe company to improve short-term cash flow and made the bankfeel more comfortable about extending a larger line of credit.
Results & benefits Results *Received $100,000 line of credit in 15 days *Strengthened case to increase line by another $50,000 over the next 2 months. *Stream-lined the accounts receivables and accounts payable cycle Benefits Received line of credit at prime plus 2 Improved business creditworthiness and ability to increase line in 2 months
New York-Based IT Company Expands Operations to New Jersey with $150,000 Unsecured Line of Credit "An entrepreneur owns and operates an IT solutions company in NewYork. The IT support company is looking to expand the 5-year-oldoperation nationally.The NeedThe IT services company needed money to expand the existingoffice and service a larger client base. Restricted to funding theexpansion through internal accruals, the owner needed a lessexpensive and faster solution.Small Business Loan SolutionAfter reviewing the business and personal financials of theentrepreneur, Biz2Credit suggested using an unsecure line of creditagainst strength of the business, personal credit and net worth of theowner. Biz2credit found a bank product that based the line of crediton the business goodwill and personal net worth of the owner. Bestof all, the product required minimal paperwork.
Results & benefitsResultsReceived funding in 15 daysReceived an unsecured credit line of $150,000 at primeplus 0.5BenefitsWorking capital accessSpeedy fundingOver 150 basis points in interest rate savingsFinanced physical expansion of existing office
Driving School Owner Finances Business Expansion with Unsecured Line of CreditAn entrepreneur owns and operates a driving school in Queens, New York.The 12-year-old school provides training for a large number of immigrantsin the New York area. With the immigrant population increasing anddemand for driving education rising, the entrepreneur is opening a newoffice in New Jersey.Financing NeedIn need of financing to expand the enterprise, the entrepreneur wanted aquick and economical source of funding to open the new office.Financial SolutionBiz2Credit reviewed the business needs as well as the personal financialstatement of the entrepreneur. Based on the estimated value of thecompany and two multifamily property units owned by the entrepreneur,Biz2Credit recommended taking an unsecured a line of credit. Thisreduced the required paperwork and accelerated the funding process. Theline of credit would be issued against the goodwill of entrepreneur, his twomultifamily units, his personal standing and the strength of the business .
Master Franchisee Expands Business in New York with Unsecured Line of Credit. A Master Franchisee of Metro PCS in operation for six years in Michigan wants to set up a franchisee network in the New York area. The Master Franchisee grosses around $2.0 million annually.The Need The Master Franchisee wanted to expand from Michigan to New York, and needed a bank to provide a line of credit against the accounts receivables. Further, this line of credit was to be based on the strength of business in MI. Also, it should increase as the A/R grew with the setting up of sub-franchisees.Financing Solution Biz2credit reviewed the financial statements of the Master Franchisee. It then used the business and personal tax returns to present the case as a full document deal. This reduced the processing time and paperwork. Biz2credit also got a detailed account receivable aging statement from the accountant in the required format and submitted the business plan for NY area.
Results & BenefitsResultsAn unsecured credit line starting at 275K at prime plus 2.Increase in credit line as the business expands in NY area.BenefitsBusiness expands in new geographical region.Sub franchisee number goes up.Consolidation of the MI and NY business happens through ACH facility
Door Manufacturer Grows Business During Recession with a Line of CreditThe Need The owner wanted to take advantage of the downturns impact on competitors sales and leverage the companys stable market position to expand and gain market share. To increase sales, the entrepreneur was looking to finance new marketing campaigns, while also maintaining excess inventory to service the new businessFinancing Solution After reviewing the business and personal financials of the entrepreneur, Biz2Credit recommended taking a line of credit against the strength of the business and personal credit of the owner. This way, the business owner could deploy capital as demand rose and only incur interest costs on used portions of the loan. Biz2Credit surveyed various lending options and zoned in on three lending institutions. The owner received the credit line at prime rate.
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