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A new plumbing and HVAC company has exploded from a small start-up to a leading regional player with support from Strategic Capital. Although most traditional lenders would not have provided funding, Strategic Capital considered the company on its individual merits and agreed to support it. A few short years later, the company now has 20 staff members, growing topline revenue, and a strong balance sheet.During the early stages, the client had a personal credit of 620, had been operating for just over one year, and a maximal monthly revenue of $26,000. Without collateral, most traditional lenders would have considered this a high risk due to the weak credit and short time in business. However, Strategic Capital said yes when the banks wouldn’t, and the business has proven to be a huge success.
They initially qualified for $20,000 of the $30,000 working capital loan that they were looking for, but this enabled them to take on larger projects. With bigger contracts completed and more in the pipeline, Strategic Capital was able to agree a stronger offer of $40,000 with a longer term. This took care of funding supplies and labor costs, while positive customer reviews and word-of-mouth increased, leading to even more referrals for similar large-scale projects. At this point, they were able to hire three new full-time team members as well as revamp their branding and marketing.
After just two years of operation and some coaching from Strategic Capital, the company owner had improved their personal credit to 665, established a positive D&B rating, and started building business credit too. At this point, Strategic Capital forged a new lender relationship to establish a $75,000 revolving line of credit which was a cheaper form of capital used to support the natural ebb and flow of cash for project expenses.
The company’s founder was pleasantly surprised by Strategic Capital’s client-centered approach. He said "I had received many calls (and emails and mail) from ‘capital funding companies’ before I spoke with Strategic Capital. What most of the industry had tarnished, Strategic Capital restored. The biggest difference was that they were consultative and didn't even try to sell me anything on our first call. They simply wanted to learn more about our business operations. I was surprised when they came back the next day with a complete analysis and a multi-year plan on how to take our business from average to great. Really positive experience and I'd recommend to any business owner."
Since then the business has experienced further growth and now benefits from a $130,000 BLOC. The funds are only used for 1-2 months at a time and then repaid in full after project completion. This means that they’ve been able to borrow for just 3-5% simple interest and catapult their start-up into a regional leader. Strategic Capital has now helped them to obtain an affordable equipment lease program of $126,000 for new vehicles and tools, with the option to own the equipment outright for just $1 at the end of the term.
Supporting small businesses like this is what Strategic Capital lives for. While most traditional institutions reject applications, they provide an alternative option at competitive rates. By considering more variables than simply credit and trading history, they’re able to identify small companies with potential and support them on their journey.
About Strategic Capital
Headquartered in Kansas City, Strategic Capital was founded in 2014 to tackle the prevalent demand for capital within the small business community. We believe getting the capital you need for your business should be a fast, simple, and secure process; everything we do aligns to strengthen one of those pillars. We want to break speed records, not bank accounts. Small business is the backbone of America and we’re the backbone of small business.
Contact Info:
Name: Ryan Ridgeway
Email: Send Email
Organization: Strategic Capital
Address: Strategic Capital Kansas City, MO 66212 United States
Phone: 816.298.0858
Website: https://capitalwithstrategy.com/
Release ID: 391647
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