Industry
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Wholesale and Distribution
Technology, Media, Communication
Construction and Real Estate
Finance and Insurance
Franchise
Manufacturing
Medical
Public Service, Recreation, Leisure
Retail
Services
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Unsecured Line of Credit
Secured Line of Credit
SBA Term Loan
Term Loan
Inventory Financing
Accounts Receivables Financing
Commercial Loan
| Gas Station Owner Uses an Unsecured Line of Credit and Credit Card Receivables to Expand Business |
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Background
An entrepreneur owns and operates three gas stations in Wisconsin. Properties owned include real estate, food stores and gas pumps. All stations accept major credit cards and each conduct an average monthly credit billing of about $100,000. The real estate of gas stations is lien free and valued at around $2 million.
The Need
In order to increase current cash flow, expand the business and improve future profitability the owner needed $300,000 to add a car wash, increase the inventory and for purchase order financing.
The owner wanted to access an unsecured line of credit (no personal guarantees, no effect on personal credit) quickly and was not willing to put lien on real estate or pay a closing cost. With the desired loan amount over $100,000, the owner did not qualify for an unsecured line of credit product. Financial Solution
The owner approached Biz2credit for a financial solution. Based on the short-term needs and the past personal and business financial statements, Biz2Credit advised the owner to take out a cash advance against the credit card receivables. To minimize liabilities and avoid cross corporate guarantees, each gas station was presented as a separate entity. Biz2Credit examined the credit card receivables for each gas station. One gas station had a retail store. The other two establishments included a food joint attached to the retail store. Biz2Credit combined the food and retail credit card receivables of the two gas stations to access a larger cash advance at a lower interest rate for the borrower. The deals closed in 10 days, at no closing cost and no fixed-term.
Results
Benefits:
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