Small Business Financing Solutions

The Request

A small business owner recently contacted me at my business credit coach for a hard money loan. He wanted to borrow $170,000 on a property valued at $360,000. His goal was to build a garage to house and work on his truck, as he owned a transportation business.  The borrower went to numerous sources to be dragged along for 3 months with no solutions. The borrower requested a hard money loan our small business financing solution includes a business revenue loan, equipment lease and business credit card bundle.

The follow up solution of developing business credit may get lost in the need for immediate action, but it is the most important solution provided.

The Facts

After carefully probing the customer to understand exactly what he wanted to do and the assets he had at hand. I ascertained these facts:

  • The property in questions was his primary residence (not usable for hard money loan).
  • The borrower had a recent bankruptcy less than one year old.
  • The borrower has been recently sued (hence the bankruptcy).
  • The borrower recently changed the business from a sole proprietor to an LLC (11 months ago).
  • The borrower only needs $80,000 to build the garage, would like $20,000 for cash reserves.
  • The borrower has monthly cash flow of $40,000 to $50,000
  • The borrower has free and clear equipment valued at $90,000 only 30 months old
  • The borrower has personal credit score of 660 plus
  • The borrower has been in business for 10 years

The Solution

Though we could not do the deal the way he requested (no one could) we were able to provide these small business financing solutions for the customer:

  1. Business Revenue Loan                       $40,000                          (4 days)
  2. Equipment Loan                                   $40,000                          (15 days)
  3. Business Credit Card Bundle             $20,000                          (10 days)
  4. TOTAL FINANCING                           $100,000                       (15 DAYS)
  5. Follow up solution build business credit to be separate from personal credit that will allow borrower to easily get line of credit for $50,000 to $250,000 based solely on the payment history of their business.

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