Medical Transcription Company Expands Business with a Secured Line of Credit
Background
An entrepreneur owns and operates a medical transcription company with annual revenues around $1.3 million in 2006. The company is headquartered in New Jersey.
The Need
In response to declining margins, the owner wanted to expand business volume by hiring a new sales team and adding clients.
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. Unlike a traditional term loan, a line of credit gave the owner the ability to increase payroll as new clients were added, only paying interest on the amount used. Biz2Credit surveyed various lending options and targeted two lending institutions. The owner received the line of credit at a rate of prime.
Results
- Received a line of credit of $300,000 within 21 days
- Line provided at prime rate
Benefits
- Additional working capital to service new clients
- Flexibility to increase sales force, invest in IT infrastructure
- Ability to secure long term contracts with hospitals and clinics
- Increased annual revenues by over $350,000
Unlike a traditional term loan, a line of credit gave the owner the ability to increase payroll as new clients were added, only paying interest on the amount used.The owner received a line of credit of $300,000 within 21 days
More Success Stories
"Biz2Credit was the biggest, biggest part of my success here. Biz2Credit came in like a lifesaver," she said
Jyoti Sharma
Unstoppable: How Just-in-Time Funding Gave This Salon Owner Her Dream
VIEW SUCCESS STORY"I'd give Biz2Credit a 15 out of 10. Joe, my funding specialist, does a great job. He's always on point and really understands my business. Every time I've worked with him he's come through for me in a big way
Reinaldo Anzola
How One Business Owner Completed his Year-Long Renovation Plan in Just 1 Month Thanks to Fast Financing
VIEW SUCCESS STORY"The turnaround time for funding was quick with Biz2Credit," Raza told us. "As soon as they got our information we had a decision - there was no waiting period like I experienced with other lenders."
Raza and David Bolos