Consumer Finance Company

Business Capital Structures and Secures $9 Million Credit Facility for Finance Company Providing Sub-Prime Consumer Credit to the Retail Industry

The Client

The Company provides sub prime retail loans offered to customers at point of purchase..  It operates in an under-served market, as most independent retailers do not offer in-store credit options. Loans are structured as installments, high yield in favor of the client and provide a unique option for customers who cannot pay cash or finance a high dollar item, thereby increasing potential revenue to retailers. The finance company processes thousands of applications each month and has engaged hundreds of partner stores located in 28 states, including some of the largest wholesalers and retailers in the U.S.

The Situation

The Company’s niche in the industry is providing a leasing alternative for independent retailers, a largely untapped market.  In less than one year, sales levels have increased dramatically with rapidly multiplying business agreements and credit applications. A working line of credit was needed to fund hyper portfolio growth and allow the Company to process more loans and take advantage of new business opportunities with wholesalers and distributors.

The Solution

After careful consideration and due diligence, the client’s investment banker selected Business Capital to assist with a debt capital raise.

“Business Capital was a pleasure to work with. Their team quickly understood our client’s consumer finance business model and needs, identified several potential institutional capital sources, and assisted with the transaction right up through the closing. We look forward to working with them on more deals in the future.”

Ian McNeil,Principal, Brennan Capital Partners

Business Capital (BizCap) was able to understand the complex nature of the client’s highly specialized and unique request, providing financing to a consumer finance company.  BizCap structured and secured a $4 million senior secured credit facility utilizing a capital source targeted for their proficiency in this unusual category. The line of credit allows the company to take advantage of new business opportunities, grow their portfolio and revenues, and continue to fill a gap in consumer credit.

“Delivering a credit facility for our consumer finance client was particularly challenging and rewarding at the same time. This deal required out- of –the- box financing and expertise, which BizCap has the reputation of delivering to clients for over a decade.”

Chuck Doyle, Managing Director, Business Capital

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