Biz2credit loan products

Biz2credit Loan Products

Textile trade company uses $100,000 line of credit to cover cash crunch

A textile trading company has been in business for 3 years. From 2006 to 2007, the company's revenue grew by over 400 percent. Unfortunately, the current economic recession has hurt the company's cash flow..

The Need

With a limited credit history, the business owner only qualified for high-cost private loans. The entrepreneur wanted to refinance the expensive private loans with a line of credit from a bank to service the existing demand and cope with the short-term cash crunch.

Financing Solution

After reviewing the business challenges and financials of the company, Biz2Credit recommended consolidating the company's business banking, shortening the receivables and implementing a structured account payable plan to improve cash flow. This helped the company to improve short-term cash flow and made the bank feel more comfortable about extending a larger line of credit.

Results & benefits

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Results

*Received $100,000 line of credit in 15 days

*Strengthened case to increase line by another $50,000 over the next 2 months

*Stream-lined the accounts receivables and accounts payable cycle

Benefits

Received line of credit at prime plus 2

Improved business creditworthiness and ability to increase line in 2 months

New York-Based IT Company Expands Operations to New Jersey with $150,000 Unsecured Line of Credit

"An entrepreneur owns and operates an IT solutions company in New York. The IT support company is looking to expand the 5-year-old operation nationally.

The Need

The IT services company needed money to expand the existing office and service a larger client base. Restricted to funding the expansion through internal accruals, the owner needed a less expensive and faster solution.

Small Business Loan Solution

After reviewing the business and personal financials of the entrepreneur, Biz2Credit suggested using an unsecure line of credit against strength of the business, personal credit and net worth of the owner. Biz2credit found a bank product that based the line of credit on the business goodwill and personal net worth of the owner. Best of all, the product required minimal paperwork.

Results & benefits

Results

Received funding in 15 days

Received an unsecured credit line of $150,000 at prime plus 0.5

Benefits

Working capital access

Speedy funding

Over 150 basis points in interest rate savings

Financed physical expansion of existing office

Driving School Owner Finances Business Expansion with Unsecured Line of Credit

An entrepreneur owns and operates a driving school in Queens, New York. The 12-year-old school provides training for a large number of immigrants in the New York area. With the immigrant population increasing and demand for driving education rising, the entrepreneur is opening a new office in New Jersey.

Financing Need

In need of financing to expand the enterprise, the entrepreneur wanted a quick and economical source of funding to open the new office.

Financial Solution

Biz2Credit reviewed the business needs as well as the personal financial statement of the entrepreneur. Based on the estimated value of the company and two multifamily property units owned by the entrepreneur,

Biz2Credit recommended taking an unsecured a line of credit. This reduced the required paperwork and accelerated the funding process. The line of credit would be issued against the goodwill of entrepreneur, his two multifamily units, his personal standing and the strength of the business.

Master Franchisee Expands Business in New York with Unsecured Line of Credit

A Master Franchisee of Metro PCS in operation for six years in Michigan wants to set up a franchisee network in the New York area. The Master Franchisee grosses around $2.0 million annually.

The Need

The Master Franchisee wanted to expand from Michigan to New York, and needed a bank to provide a line of credit against the accounts receivables. Further, this line of credit was to be based on the strength of business in MI. Also, it should increase as the A/R grew with the setting up of sub-franchisees.

Financing Solution

Biz2credit reviewed the financial statements of the Master Franchisee. It then used the business and personal tax returns to present the case as a full document deal. This reduced the processing time and paperwork. Biz2credit also got a detailed account receivable aging statement from the accountant in the required format and submitted the business plan for NY area.

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Results & Benefits

Results

An unsecured credit line starting at 275K at prime plus 2.

Increase in credit line as the business expands in NY area.

Benefits

Business expands in new geographical region.

Sub franchisee number goes up.

Consolidation of the MI and NY business happens through ACH facility

Door Manufacturer Grows Business During Recession with a Line of Credit

The Need

The owner wanted to take advantage of the downturn's impact on competitors' sales and leverage the company's stable market position to expand and gain market share.

To increase sales, the entrepreneur was looking to finance new marketing campaigns, while also maintaining excess inventory to service the new business

Financing Solution

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. This way, the business owner could deploy capital as demand rose and only incur interest costs on used portions of the loan.

Biz2Credit surveyed various lending options and zoned in on three lending institutions. The owner received the credit line at prime rate.

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