Master Franchisee Expands Business to New York with Accounts Receivables Financing
A master franchise cell phone provider is based in Michigan with quarterly accounts receivables of over $500,000. The entrepreneur plans to roll out its services in New York to tap into immigrant community.
The master franchisee wanted to extend the business to New York and use a local bank to finance the expansion. The entrepreneur needed $300,000 to cover master franchisee fees, the cost of setting up the operations and recruiting sub franchisees. He also needed assistance enrolling local cell phone stores and local stores as sub franchisees.
Biz2Credit reviewed the financial statements of the franchise business as well as the personal financial statement of the entrepreneur. Based on the estimated value of the accounts receivables, Biz2Credit recommended that the company take a line of credit against the accounts receivables. The entrepreneur was also suggested to consolidate all the business banking and use an ACH facility to access larger lines of credit in the future. Biz2Credit connected the entrepreneur to a real estate broker and sub franchisees.
- Received funding in 30 days
- Received $300,000 at prime plus 1
- Consolidated all banking business
- Refinanced credit card receivables loan
- Referred to 5 potential sub franchisees in NY area
- Revolving Credit line of $300,000 up to 7 years
- 800 basis point interest rate savings
- Credit rating improved with business banking consolidation
Biz2Credit connected the entrepreneur to a real estate broker and sub franchisees and Received funding in 30 days -- Master Franchisee
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