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limousine company

Limousine Company Accesses $150,000 Unsecured Line of Credit to Expand Business

Background

A minority entrepreneur owns and operates a real estate brokerage business with annual revenues around $1.7 million in 2007. The company is headquartered in New York.

The Need

In response to having an need for online presence, the owner wanted to expand business volume by revamping the website and spending more money on SEO.

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. Unlike a traditional term loan, a line of credit gave the owner the flexibility to increase spending on IT and add payroll as the business built up. Biz2Credit surveyed various lending options and targeted two lending institutions. The owner received the line of credit at a rate of prime.

Results

  • Received a line of credit of $300,000 within 30 days
  • Received an interest rate of around prime plus 1

Benefits

  • Increased the head count from 10 to 50 agents
  • Web site ranked on the first page on Google
  • Increased annual revenues by over $500,000 from 2006 to 2007
  • Developed more services for international buyers

Biz2Credit provided lenders with the personal account records of the entrepreneur, detailing client payments as well as a letter from the accountant proving the company's existence for 22 months.

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