Driving School Owner Finances Business Expansion with Unsecured Line of Credit

Background

An entrepreneur owns and operates a driving school in Queens, New York. The 12-year-old school provides training for a large number of immigrants in the New York area. With the immigrant population increasing and demand for driving education rising, the entrepreneur is opening a new office in New Jersey.

Financing Need

In need of financing to expand the enterprise, the entrepreneur wanted a quick and economical source of funding to open the new office.

Financing Solution

Biz2Credit reviewed the business needs as well as the personal financial statement of the entrepreneur. Based on the estimated value of the company and two multifamily property units owned by the entrepreneur, Biz2Credit recommended taking an unsecured a line of credit. This reduced the required paperwork and accelerated the funding process. The line of credit would be issued against the goodwill of entrepreneur, his two multifamily units, his personal standing and the strength of the business.

Results

• Received funding in 15 days
• Received an unsecured credit line starting at $100,000 at prime plus 1

Benefits

• Working capital access
• Refinanced high cost debt (prime plus 4)
• Financed marketing and expansion of existing office
• Lower monthly payments than high cost debts