| Case Study: Get Credit With Poor Credit |
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A Creative Financing Solution
Biz Profile
An entrepreneur has owned and operated a limousine company in New York for three years with average annual revenues of $1.7 million. During peak season, from September to January, the company generates 70 percent of the annual revenue, with average accounts receivables of around $900,000 Major company clients include the United Nations and international consulates located in New York City.
Financial Need and Obstacles
The owner wanted to add 25 cars to his fleet and needed an additional $400,000 to $500,000 over one year. With a personal credit score in the low 600s, weak tax returns, and the major company assets (limousines) already under lien, the owner did not qualify for a traditional line of credit.
Outcome
The primary focus was on collateralizing the company's strongest asset, the accounts receivables. After providing accounts receivables statements to prove business volume and client?le legitimacy the owner:
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