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.
"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