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IT consulting firm establishes solid credit history and accesses $100,000 line of credit

IT consulting firm establishes solid credit history and accesses $100,000 line of credit

Background

An entrepreneur owns an IT consulting company in New York that earned $700,000 in 2007. The business owner has recently moved to the United States from India.

The Need

An entrepreneur owns an IT consulting company in New York that earned $700,000 in 2007...

The owner needed $100,000 to service new projects. In the past, the entrepreneur self-funded expansion plans, but lengthening payment cycles created serious cash flow shortages. As a new immigrant to the US, the owner did not have a well-established personal credit history or trade lines, restricting access to debt financing.

Small Business Loan Solution

After reviewing the business and personal financials of the entrepreneur, Biz2Credit helped the company to build their business credit with D&B (Duns and Bradstreet) and open new trade lines. Additionally, Biz2credit located a bank product that based the line of credit on the business goodwill and accounts receivables. Biz2Credit presented the case as a full doc to the lender with supporting financials like accounts receivables aging statement to strengthen the company's creditworthiness.

Results

  • Received a line of credit of $100,00 within 25 days
  • Line provided at Prime plus 1
  • Line of credit based on accounts receivables and business goodwill

Benefits

  • Additional working capital to service business growth
  • Increased marketing expenditure
  • Retired high cost debt

As Deepak said, "The speed was exceptional. I was able to get a loan in 24 hours, and I took ownership of the business the very next day."