Vista Pharmaceuticals is a pharmaceutical company founded by a group of doctors in 2006 to manufacture and market bulk drugs for the U.S. market. In late 2009
they received FDA approval for their manufacturing plant located in India to start shipping bulk drugs to the US market.
In order to market and distribute the drugs, the doctors needed working capital to recruit marketing staff as well as set up the infrastructure needed to handle all the sales calls. The company approached Biz2Credit to help raise debt financing. Its main challenges were that it had incurred had $2 million in losses during in last 2 years due to initial research and development (R&D) and lacked a revenue stream.
Doctors approached Biz2Credit to help them in raising debt financing for the company which has losses in last 2 years due to initial research and development (R&D) to a tune of $2 million. These huge losses and lack of any revenue was making banks extremely hesitant in giving any kind of financing to the company.
Biz2Credit suggested the company to amortize the R&D expenses over 5 years and to get an industry valuation for the FDA license. The valuation of the license at around $2 million coupled with amortized losses enabled the company to become eligible for a SBA 7(a) loan
Vista Pharmaceuticals obtained $575k in working capital at a low interest rate (6%).
"Biz2Credit was the biggest, biggest part of my success here. Biz2Credit came in like a lifesaver," she said
"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
"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