Pet Product Company Expands
Asset-Based Loan Pet Product Company Expands
Author: Valerie Mellema
Date posted: 02.27.23

People love their pets. Many of them consider pets part of their family. So it’s no surprise that pet products are a huge industry in the United States and beyond. One family was so dedicated to their pets that they chose to start creating their own clothes for pets. It quickly turned into an online business that did very well. As the business became more successful, the owners knew that they wanted to expand and offer additional products. It was the only way they could capitalize on pet parents with a need for items besides clothes.

How It All Started

 

Looking at the numbers and possibilities, the owners wanted to move forward and see if this was something they could swing, and from this point, it was all about finding proper financing, with the Pet Product Company Expands, and pulling the trigger on growing as a company for pet lovers.

 

Pet Product Company Expands its horizons as the owners, driven by their passion for pets, explore new possibilities and secure the financing needed to grow their business.

 

What Were the Involved Costs?

 

Next, the owners had to consider the costs of upgrading the business. They recognized that the amount would exceed their personal resources. However, before finalizing the optimal financing solution for the change, understanding the required funding was crucial.

Upon examining the specifics of their intended enhancements, they established that $100,000 would be necessary to initiate the project.

Pet Product Company Expands

What Type of Financing Is the Right Choice?

 

After choosing to upgrade and determining the required funds, the owners actively sought the ideal financing solution. Initially, they explored conventional options such as small business loans, lines of credit, and merchant cash advances. However, these choices didn’t align perfectly with their needs.

 

Subsequently, they conducted more thorough research to uncover alternatives better suited for their expanding pet product company. Eventually, their efforts yielded results when they discovered asset-based loans. Consequently, they decided to proceed with this particular option.

 

Why Choose This Loan?

 

Several compelling reasons supported the decision to pursue an asset-based loan. Firstly, leveraging collateral guarantees a low interest rate, translating to more manageable monthly payments that bolstered the business’s ongoing prosperity. Moreover, the ability to use a diverse range of assets as collateral added to the attractiveness of this option.

Meeting the qualification criteria was effortless for the business; having been operational for a year, boasting an annual revenue of $250,000, and demonstrating a FICO score of 650 or higher. Finally, possessing ample assets was the concluding aspect, a requirement comfortably met by the company through existing stock and invoices.

The Aftermath

 

After everything was said and done, the funding came through, enabling the business owners to expand their product line. By introducing new options for all kinds of pet owners, the business made a commendable decision. Notably, this strategic move has consistently drawn more customers since they acquired the loan, underscoring the lasting and positive impact of their forward-thinking choice.

 

Right now, the business is busy and the owners are constantly looking for additional ways to improve the brand. They are well aware that they can explore the possibility of securing another asset-based loan. If it turns out they require a cash injection to sustain their continued growth, they have this option in their strategy.

Pet Product Company Expands
About The Author | Valerie Mellema

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.

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