A medical equipment distribution company has been in business for 2 years. From 2006 to 2007, the company's revenue grew by over 900 percent. Low sales in the first year of the business prevented the company from getting a line of credit from a traditional bank. Therefore, the owner is forced to finance business expansion with high cost loans from vendors.
The business owner wanted an inexpensive source of funding to replace the high cost vendor financing.
Based on the estimated value of the accounts receivable, Biz2Credit suggested using a line of credit against the business's accounts receivables. The company was suggested to leverage 85 percent of receivables to service new accounts and manage increased billings from existing clients with cheaper funding.
Medical Equipment Distributor received $150,000 at prime plus 2 in 15 days
"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.