Well Established Medical Practice expands with a new low cost Credit Facility
A well established medical practice running for 15 years in Manhattan doing around USD15million
NYC running approached Biz2Credit to help them replace an existing high cost USD1.9million term loan with a low cost alternative as well as get a USD 1million Line of Credit (LOC) for business expansion. The managing doctor is one of the leading anti aging experts in the country and has a team of around 40 people in doctor's office. The money was required to fund business expansion as well as launch a new line of products and services for which LOC was required.
As a first step, Biz2Credit analyzed the current and past business and personal tax returns as well as the personal financial statements . It concluded that the medical practice would be best suited to replace the loan with a lower cost fixed interest rate loan while the line of credit could be arranged against accounts receivables which could be floating interest rate product with an interest rate cap. Besides this, Biz2Credit helped them to increase their business credit score on D&B which helped them to get better pricing.
Biz2Credit also helped the business get increased working capital line every 6 months down the line.
- The Medical Practice was able to lower its interest cost from 8% to 4.99% on the term loan.
- The line of credit was sanctioned at US prime plus 1 (4.25%)
- The business has been set up for further increases in line of credit every 6 months.
- Business has been able to add another 5 jobs from the time it got the low cost funding.
- Due to lower debt servicing ratio, the business has become eligible to get another USD0.5 million in funding.
Biz2Credit helped them to increase their business credit score on D&B which helped them to get better pricing.
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