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Auto Workshop

Entrepreneur Uses a Cash Out on Industrial Warehouse Property to Set Up Auto Workshop

Background

An entrepreneur with 15 years of experience in the auto industry owns a two year old industrial warehouse in Pennsylvania, valued at $1,500, 000.

Financing Need

The entrepreneur needed $350, 000 to set up an auto workshop in Allen town, PA. The amount included $100, 000 for working capital and $250,000 for capital improvements cost and equipment purchases.

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Financing Solution

Biz2Credit reviewed the business needs as well as the personal financial statement of the entrepreneur. Based on the estimated value of the industrial warehouse, Biz2Credit recommended applying for a cash out on the industrial warehouse. A commercial loan would be cheaper and faster funding source than unsecured or equipment backed financing.

Results

  • Received funding in 30 days
  • Length of loan term set at 20 years
  • Saved 2 percent on interest rate

Benefits

  • Working capital access
  • Longer loan term than equipment financing
  • Lower monthly payments than equipment financing
  • Flexibility to increase funding up to 80 percent of property value

An entrepreneur with 15 years of experience in the auto industry owns a two year old industrial warehouse in Pennsylvania, valued at $1,500, 000.