Cash. We Help You Get It.® – Line of Credit Increase
Posted on August 31, 2010 by Grant Brisacher
Late last year, I was successful in finding and negotiating an increased line of credit for a Consumer Based Product client.
Before I was hired, the Company was struggling with getting suppliers paid due to the strain on working capital as a result of increasing sales. The Company was operating with an SBA backed $350,000 line of credit that was clearly insufficient to fund their growth. Their bank was not a business bank and didn’t understand my client’s working capital needs and how to apply a borrowing base formula to my client.
I interviewed several banks and finally found one that understood my client’s business and growth strategy. As a result, I was able to help my client secure and increase their line of credit from $350,000 to $2,200,000. As a result, my client was also able to get a credit and terms increase from their primary supplier in China. In fact, the factory doubled their credit and extended their pay date by 30 days.
Now, my client is able to continue to grow profitably as well as manage their cash flow due to the increased line of credit and bank relationship.
As a B2BCFO®,we take time to understand our client’s business model and how to properly communicate the essential numbers and key metrics to capital resources.
Cash. We Help You Get It.®
Get Started With Grant
Get Your own complimentary* Discovery Analysis™ from B2B CFO®
*Complimentary for qualified business owners