Line of Credit Energy Company Has A Bright Future
Author: Valerie Mellema
Date posted: 12.13.22

A huge company in the Midwest became known as one of the best options for SaaS development and provision in the energy sector. The main purpose of the business is to allow suppliers to manage the full customer lifecycle using a single cloud-native program. The SaaS company helps more than a dozen energy companies deliver excellent service in commercial, industrial, and domestic spaces, which serves millions of companies and households. The company has grown a lot in the last few years and has been focusing on growth as a brand.

The Need to Make a Few Changes

As growth happens, a company has to keep up with it. Not having the means to do that can leave a once-popular company picking up the pieces after losing clients. Accelerating the growth of the company was needed and it was clear the best way to do that would be to invest in technology, people, and future acquisitions.

 

The owners of this business realized that financing would be needed but wanted to be sure all of the options were considered. The first thing that was needed was an assessment of how much this project would cost.

 

Nailing Down the Numbers

It’s hardly inexpensive to finance improvements, but the company needed it and knew it was an investment worth making. With a strong record of growth, the company could drive the energy industry toward a future with more digitization. It would be a way for the brand to show its dedication to customers and innovation.

 

After going through the numbers several times, the company realized that an investment of $250,000 would be needed to move forward. All that remained was determining the right type of loan for such an important project.

A Business Line of Credit Is Chosen

 

With businesses that have seen a lot of success, there are many types of financing to choose from. For instance, the brand could have chosen an asset-based loan, or a term loan. While these were options, none of them quite offered what the company was looking for as it moved forward.

 

Instead, after weeks of research and discussion, the business decided to move forward with a business line of credit. It hit all of the brand’s priorities without having any disadvantages that would be an issue in the future.

 

Reasons to Choose a Business Line of Credit

There were plenty of options for financing but in the end, a revolving line of credit was considered a great choice. This sort of financing may have a limit but that wouldn’t be a problem. What makes this a great financing option is the fact that as a line of credit is paid down, it opens access to additional credit.

 

The business met all the qualifications, such as an excellent FICO score, over $400,000 in annual revenue, and a year in business.

What Happened in the End?

Once the line of credit was available, which was only 48 hours later, the brand was able to get started with its new project. Working slowly and paying back the amount with interest wasn’t an issue. In the end, the improvements were made and the brand is already jumping into new initiatives and projects.

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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