Door Manufacturer Grows Business During Recession with a Line of Credit
Background
An entrepreneur owns and operates a company that manufactures and sells fireproof doors. In business for over 20 years, the company is headquartered in New York and generated around $1.5 million in revenue for 2007.
The current real estate crisis largely affected businesses servicing the housing industry.
The Need
The owner wanted to take advantage of the downturn's impact on competitors' sales and leverage the company's 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 business
Financing 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.
]Results
- Received a line of credit of $300,000 within 30 days
- Received line at prime rate
Benefits
- Additional working capital for marketing and advertising initiatives
- Ability to hire sales team
- Flexibility to hold excess inventory without having to lower prices
- Positioning to expand market share
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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