Success Story: Term Loan for a West Coast Utility Contractor
Updated: Jan 6
Hello from all of us at Business Capital Consultants!
One of our favorite success stories comes from our work with a utility contractor on the West Coast. When we first met this merchant, he knew he needed a credit facility to provide working capital for upcoming jobs but he didn't know how to get there.
Where He Was:
After being bombarded by offers for large approvals with very high costs over very short terms, this business owner was frustrated. He has strong monthly numbers with reliable clients so it didn't make sense that he couldn't get something better. Originally, he had focused on improving his credit but, as his credit rose, the offers did not improve.
What We Did:
After a brief financial analysis, we helped this company construct a plan to apply for a Term Loan. The problem lay in two separate arenas:
A. the merchant was being pushed toward sub-prime products
B. his current accountant had constructed inaccurate financials
While our financial advisors worked with this company's accounting specialists to produce financials which accurately reflect profit, loss, and assets, our client relationship team worked with the business owner on packaging the materials in order to present the company in the best light possible.
We know the expectations of our partner banks and they are familiar with the high quality of our submissions. Because of our familiarity with each of the underwriting procedures for our banks we knew what to include, what to highlight, and other nuances of making the approval process swift and successful.
The Final Result:
The time spent from our first phone call to funding this merchant totaled a little over a month. The end result was a 350k Term loan requiring no collateral at about 8% over 10 years with monthly payments of around $4200! This is substantial savings over simple interest products with shorter amortizations.
While working internally to properly prepare his application took about 2 weeks, we were able to match him with one of our Preferred-Partner banks which sped up the process of approval and funding over the pace of a typical term loan broker. We maintained an open line of communication between our partner bank and our merchant throughout the process, even assisting with some additional nuances such as obtaining proper flood insurance.
The end result produced a credit facility that met the needs of the client and enabled him to purchase more equipment, hire more workers, and bid out on more jobs for this busy summer season!
Every deal is different and our team at Business Capital Consultants strives to create solutions that are tailor-made for your needs. Like many others, this business owner was turned down by banks and brokers and was frustrated by the terms offered by predatory lenders. Using the advantage of our company's experience and expertise, this company was able to rise over the challenges presented by modern lending practices and show the true potential of his company.
We encourage you to use our services to your advantage similarly. We have the knowledge, connections, and honest intentions to do what is best for your company. We offer no cost, no obligation consultations to keep you informed on what you are eligible for currently and how you can position yourself for advancement in the future. With Business Capital Consultants, you're never forced to blindly navigate the world of lending, instead, you Know Before You Borrow.
-Written by Katie Sutton