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
"The turnaround time for funding was quick with Biz2Credit," Raza told us. "As soon as they got our information we had a decision - there was no waiting period like I experienced with other lenders."
Raza and David Bolos
"Dr. Gautam came across Biz2Credit after seeing multiple TV commercials and figured he'd give it a shot. After submitting the application and speaking with his Case Manager, he was funded $350,000 within 48 hours."
Dr. Ravindra Gautam
"Biz2Credit saved the day and 48 hours later, I had the keys to my new fitness studio in my hand," said Zadeh. "I don't know how Joe did what he did for me, but I'm thankful for his help. He even got me an easy repaymen