Franchise Owner Expands Business Nationally with a Secured Line of Credit
Background
An entrepreneur owns and operates 10 franchises in New York with total annual revenues for 2007 around $25 million. The franchisee is looking to expand nationally.
The Need
The small business owner needs money quickly and at a low rate to open a new store and purchase equipment for existing operations.
Financing Solution
After reviewing the business and personal financials of the entrepreneur, Biz2Credit recommended taking a secured a line of credit against the strength of an existing store and the personal credit and net worth of the owner. A line of credit gave the franchisee the flexibility to use the money at any time, and not worry about incurring interest on the unused loan portion.
Biz2credit located a secured line of credit, specifically geared for business owners that own multiple S corps and that do not want to use the company to raise capital.
Results
- Received a line of credit of $400,000 within 15 days
- Line provided at Prime rate
Benefits
- Additional working capital to expand and renovate the existing store
- Financing to open a new store
- Retirement of expensive debt
Read on for more information on how to get into the franchise business.
Franchise Owner received a line of credit of $400,000 within 15 days