Medical Transcription Company Expands Business with a Secured Line of Credit
An entrepreneur owns and operates a medical transcription company with annual revenues around $1.3 million in 2006. The company is headquartered in New Jersey.
In response to declining margins, the owner wanted to expand business volume by hiring a new sales team and adding clients.
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. Unlike a traditional term loan, a line of credit gave the owner the ability to increase payroll as new clients were added, only paying interest on the amount used. Biz2Credit surveyed various lending options and targeted two lending institutions. The owner received the line of credit at a rate of prime.
- Received a line of credit of $300,000 within 21 days
- Line provided at prime rate
- Additional working capital to service new clients
- Flexibility to increase sales force, invest in IT infrastructure
- Ability to secure long term contracts with hospitals and clinics
- Increased annual revenues by over $350,000
Unlike a traditional term loan, a line of credit gave the owner the ability to increase payroll as new clients were added, only paying interest on the amount used.The owner received a line of credit of $300,000 within 21 days
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