Franchisee Expands Business with Unsecured Line of Credit - Biz2Credit
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Master Franchisee Expands Business in New York with Unsecured Line of Credit

Master Franchisee Expands Business
Background

A Master Franchisee of Metro PCS in operation for six years in Michigan wants to set up a franchisee network in the New York area. The Master Franchisee grosses around $2.0 million annually.

The Need

The Master Franchisee wanted to expand from Michigan to New York, and needed a bank to provide a line of credit against the accounts receivables. Further, this line of credit was to be based on the strength of business in MI. Also, it should increase as the A/R grew with the setting up of sub-franchisees.

Solution

Biz2credit reviewed the financial statements of the Master Franchisee. It then used the business and personal tax returns to present the case as a full document deal. This reduced the processing time and paperwork. Biz2credit also got a detailed account receivable aging statement from the accountant in the required format.

Results
  • An unsecured credit line starting at 275K at prime plus 2.
  • Increase in credit line as the business expands in NY area.
Benefits
  • Business expands in new geographical region.
  • Sub franchisee number goes up.
  • Consolidation of the MI and NY business happens through ACH facility.
Tagged in
Retail Trade
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