Based out of the Midwestern United States, a specialty pizza shop had been keeping customers filled with dough, sauce, cheese, and toppings for about five years. While the business was doing well serving up pies to customers, it became clear that they had a chance to go further and become even more successful. The way the Internet connects people with brands changed the trajectory of this brand when a review about their pizza went viral, and the whole country saw it.
The pizza shop owners saw how other companies were making money with online stores. Others were putting themselves in grocery stores or selling to restaurants and caterers. They knew their pizza was good, and after others said the same thing, it seemed like the right time to expand.
There was only one thing standing in the way – having the money to start putting themselves out there on a larger scale.
After their accountant worked on some figures, they decided that if they could get $150,000, they could start moving forward. They envisioned their brand becoming more than just a beloved local pizza joint. The amount was sufficient for marketing. It also covered collaborating with local caterers and establishing an online shop to sell pizza nationwide.
There are a lot of potential sources for financing with a small business. However, the pizza shop owners wanted to make sure they did this right. Taking out a decent-sized loan would work, but it could lead to taking out more loans in the future once it’s paid off.
They considered a business line of credit due to its advantages over traditional loans and their confidence in the achievable amount. After gathering quotes for various financing options, they ultimately chose the business line of credit.
The company chose a business line of credit primarily because of its revolving form. In addition, another significant advantage is that they only pay interest on the amount they use. If they use only $100,000, their interest payments would be solely based on that amount. This could potentially make it a cost-effective solution.
Additionally, once they spent all the money, they only had to pay it back with interest. Afterward, they could use it again for other parts of their expansion. This made it a win-win situation.
Since securing the business line of credit, things have been going great for the company. They expanded their sales to caterers and specialty grocery stores in the area. Additionally, they even set up a website for nationwide frozen pizza sales. Now, all that’s left is to watch as their business grows, and in case they need it, they have the line of credit to fall back on.
Valerie has over 16 years of experience as a professional writer of blogs, eBooks, articles and press releases, with a focus on finance and alternative lending. Valerie resides with her family in Texas and is passionate about her horses.
