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Franchise

Franchise Owner Expands Business Nationally with a Secured Line of Credit

Background

An entrepreneur owns and operates 10 franchises in New York with total annual revenues for 2007 around $25 million. The franchisee is looking to expand nationally.

The Need

The small business owner needs money quickly and at a low rate to open a new store and purchase equipment for existing operations.

Financing Solution

After reviewing the business and personal financials of the entrepreneur, Biz2Credit recommended taking a secured a line of credit against the strength of an existing store and the personal credit and net worth of the owner. A line of credit gave the franchisee the flexibility to use the money at any time, and not worry about incurring interest on the unused loan portion.

Biz2credit located a secured line of credit, specifically geared for business owners that own multiple S corps and that do not want to use the company to raise capital.

Results

  • Received a line of credit of $400,000 within 15 days
  • Line provided at Prime rate

Benefits

  • Additional working capital to expand and renovate the existing store
  • Financing to open a new store
  • Retirement of expensive debt

Read on for more information on how to get into the franchise business.

Franchise Owner received a line of credit of $400,000 within 15 days