Beverage Company Grows
Asset-Based Loan Beverage Company Grows
Author: Valerie Mellema
Date posted: 07.10.23

Anyone who delves into entrepreneurship hopes to create a successful business that boasts happy customers. The owners of a beverage manufacturing company were no different and after years of work had been seeing more success due to a series of operational changes. Located on the West Coast, this business had gone from a small local business to one that was shipping products coast to coast.

Change in Management Calls for a Solution

 

As changes swept across the company, quick thinking and the ability to embrace innovation became necessary. This became particularly evident when a management challenge arose that required rectification. Following the situation, there was a degree of faltering in funding capacity, which needed addressing. Since the business was accustomed to tackling challenges, it promptly convened meetings and conducted research to ascertain the best way to proceed.

 

Determining the Required Funding Amount

After examining the books and gaining a deeper understanding of the situation, leadership realized the exact amount required to ensure they could move forward and sustain their success. To return to their previous state, they determined that they needed approximately $1.5 million. Once they made this decision, it was time to research how to secure the necessary funding.

Beverage Company Grows

Selecting the Perfect Funding Options

 

The leaders already had some idea of how to move forward as they went through the numbers. However, they convened a roundtable to ensure they explored every possibility. After all, this decision would significantly impact everyone involved with the business. They examined both traditional bank financing and alternative loans with distinct benefits before ultimately deciding to apply for the necessary funds.

 

Why Choose an Asset-Based Loan

 

In the end, the beverage company ultimately opted for the best solution – an asset-based loan. This type of loan not only grants businesses the flexibility to allocate funds for various purposes. It is also commonly harnessed as working capital. By embracing this financing option, the company could effectively leverage its existing assets. These assets include accounts receivable, equipment, and inventory, which can be used as collateral to secure a more advantageous deal. While resembling traditional loans in terms of monthly payment requirements, this asset-based loan stands out due to its collateral. This collateral typically results in lower interest rates. Consequently, it emerged as an excellent and adaptable choice. It is poised to help the business navigate the current challenges and sustain its operations as they were prior to the management change.

How Things Look Today

 

After receiving loan approval, we disbursed the funds in less than three months. The loan covered the entire amount the business required and had a term length of five years. We resolved all the monetary issues associated with the company, allowing us to continue business as usual. Today, the company is thriving more than ever and is contemplating adding a new warehouse to manage operations.

Beverage Company Grows
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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