An entrepreneur owns an IT networking company with growing annual revenues around $2.5 million for 2006. The company is headquartered in Europe with a branch in New York. Every time the company needs to finance business expansion, the entrepreneur wires money from Europe to New York.
In order to keep up with growing demand, the owner needed capital to fund new projects and add new clients.
Wiring money from Europe proved to be a time consuming and an expensive way of financing expansion plans. Bringing in capital from European operations (tax disclosure, etc.) required extensive paperwork.
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. Biz2Credit surveyed various lending options and zoned in on two lending institutions. Although the lenders offered an interest rate of prime, Biz2Credit challenged them to come up with better terms, since the entrepreneur would open an account with the bank servicing the debt. The lenders reduced the interest rate to prime minus 0.5 and offered lower cash management fees than the entrepreneur's current bank.
The lenders reduced the interest rate to prime minus 0.5 and offered lower cash management fees than the entrepreneur's current bank.
"Vamsi Yaramaka, owner of a group of gas stations in PA, secured quick funding through Biz2Credit for business expansion. Timely funding helped him revamp his business to meet growing customer demands."
"I had a backlog of work for the past 4-5 years," said Angel. "The jobs weren't breaking. With that the cash flow slowed down and I fell behind on my bills."
Arco Electrical Contractors
Navneet got in touch with the funding specialists at Biz2Credit and worked with his case manager to understand the best way to secure inventory financing. His case manager was able to get him an offer the next day.