Branching Out in the Pool World

 

Installing aboveground pools was a great source of money in the Midwest, but the owner of the company knew the company could be more. Incorporating the option to install inground pools could add clients and profit while making the company stand out from competitors.

 

However, it was going to be a serious task to make such a change. Different equipment and materials would be needed and workers would need new training. It took a while for the owner to decide to at least research the option and move on from there.

 

What Would the Cost Be?

 

First things first, it was important to understand the costs of making a big change like this. It wasn’t something that was very common so the owner had to go to several experts to get pertinent information. This alone could have left him frustrated and leaving the idea behind, but he decided to keep going.

 

Once he had an idea of what the costs would be, there was more research to undertake. However, it seemed that morphing into a more full-fledged pool installation company would be less expensive than expected. About $200,000 would be enough to get to the goal line.

Deciding on the Perfect Form of Financing

 

As research continued, the owner started to get more into the idea of actually following through with his plan. It seemed feasible and the costs were less than he expected. The next step was to look into financing options, making this whole process a lot more real.

 

Without the best credit in the world, the owner was interested in something other than a traditional loan. He looked into the other options and eventually came across an asset-based loan, which seemed like the way to move forward.

 

An Asset-Based Loan to the Rescue

 

Asset-based loans are similar to a line of credit. Essentially, the financing is secured through a form of collateral. This can be anything from equipment and inventory to balance sheet assets. As a popular pool installation company owner, it was easy to provide the assets needed to move forward.

 

The great thing about these loans is that they’re easier to access than many business loans. In addition, they are highly flexible. As long as the funds are used for business purposes, they can be used however the owner would like. These loans also tend to have a lower interest rate than traditional business loans.

Bringing Even More Fun to the Midwest

 

While the owner was merely looking into his options for expanding his business at the start, the asset-based loan let him move forward and find success with a new service. With the money from the loan, the pool company could serve a large client base and become an even bigger name in the city.

 

Since making the change to a more full-featured company, business has gone up. The owner is happy with his decision and looks toward the future with an expectation that things can only get better with time.

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