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

 

At first, it was just a random thought that adding other pet products might be nice. As time passed, the owners started to talk about it and it became clearer that everyone was passionate about the idea. This led to conversations and research delving into what it could take to expand their offerings.

 

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

 

What Costs Were Involved?

 

The costs to upgrade the business were the next thing to consider. The owners knew that the amount would be more than they could cover on their own. However, before deciding on the best solution to finance the change, it was essential to know how much money would be needed.

 

After looking into the details of what they wanted to introduce, it was determined they would need $100,000 to get going.

What Type of Financing Is Right?

 

Having decided on an upgrade and knowing how much money was needed, the owners were now on the lookout for the right financing option. First, they delved into some traditional options like small business loans, lines of credit, and merchant cash advances. None of them were quite what they wanted, however.

 

It took more digging to find other options that might work better for the expanded pet product company. Eventually, the research paid off when the owners ran into asset-based loans. They ended up moving forward with this option.

 

Why Choose That Loan

 

There were many reasons to move forward with an asset-based loan. For one thing, using collateral ensures the interest rate is low. That meant lower payments would be sent in each month so the business could continue to thrive. The flexibility to use a wide number of assets for collateral was also a consideration.

 

The qualifications were all things the business easily met, including being in business for a year, having $250,000 in annual revenue, and showing a FICO score of 650 or more. Having plenty of assets was the last aspect and the company could easily meet that requirement based on stock and invoices.

 

The Aftermath

 

After everything was said and done, the funding came through and the business owners were able to add to their product line. Creating new options for all kinds of pet owners was a great decision as they have consistently brought in more customers since taking the loan.

 

Right now, the business is busy and the owners are constantly looking for additional ways to improve the brand. They know that they can look into another asset-based loan if it turns out they need a cash injection to keep growing.

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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