An entrepreneur owns and operates a company that distributes discount goods and beauty products with annual revenues around $15 million. The entrepreneur won new state and government contracts, and orders must be filled within 30 days. The average accounts receivables cycle lasts 90 days.
The business owner needed financing to purchase excess stock and bridge the gap between the inventory purchase and payment.
After reviewing the business and personal financials of the entrepreneur, Biz2Credit recommended taking a line of credit against the strength of the business, accounts receivables and personal credit of the owner.
A line of credit gave the business the ability to increase the inventory immediately after the contract was awarded. The owner only had to pay interest on the portion of the credit line used. A term loan requires interest payments on the full loan amount. Therefore, even if the owner over estimated demand for the product and didn't use the money, they would still have to pay interest back.
Also, Biz2credit emphasized the strength of the case to win the best term. After packaging the case and highlighting the solid accounts receivables, Biz2Credit received competitive rates from two lending institutions. The owner received a credit line at Prime Rate.
An entrepreneur owns and operates a company that distributes discount goods and beauty products with annual revenues around $15 million
"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.