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manufacturing and trading company

Manufacturer Services New Demand with a Line of Credit Against Inventory and Business Goodwill

Background

An entrepreneur owns and operates a manufacturing and trading company in the North East with growing annual revenues around $2 million.

The Need

With increasing service demand, the company needs a cost effective and flexible solution to open a new warehouse, make capital improvements, add inventory and hire more staff.

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 financials of the business owner and manufacturing company, Biz2Credit located a particular bank product which secured a line of credit against business inventory and goodwill. The line of credit gave the owner the flexibility to draw out money as needed and only pay interest on the used portion.

Results

  • Received a line of credit of $300,000 within 15 days
  • Line provided at Prime
  • Line of credit based on inventory value and business goodwill

Benefits

  • Additional working capital to expand to a new warehouse
  • Flexibility to increase payroll and inventory as needed
  • Increased access to capital for future growth of inventories

Manufacturer Services received a line of credit of $300,000 within 15 days