Daily News: September 10, 2013

Business Capital Secures Facility for Consumer Finance Company

The consumer finance company provides sub prime retail loans offered to customers at point of purchase, primarily in the pet store and furniture industries. It operates in an under-served market, as most independent retailers do not offer in-store credit options. Loans provide a unique option for customers who cannot pay cash or finance a high dollar item, thereby increasing potential revenue to retailers. The finance company processes thousands of applications each month and has engaged hundreds of partner stores located in 28 states, including the largest pet wholesalers and retailers in the U.S.

In less than one year, sales levels increased dramatically and a working line of credit was needed to fund hyper portfolio growth and allow the company to take advantage of new business opportunities with wholesalers and distributors. After careful consideration and due diligence, the client’s investment banker selected Business Capital to assist with a debt capital raise.

“Business Capital was a pleasure to work with,” said Ian McNeil, principal of Brennan Capital Partners. “Their team quickly understood our client’s consumer finance business model and needs, identified several potential institutional capital sources, and assisted with the transaction right up through closing. We look forward to working with them on more deals in the future.”

Business Capital was able to understand the complex nature of the client’s highly specialized request, structure and secure a $4 million credit facility utilizing a capital source targeted for their proficiency in this unique category. The line of credit allows the company to take advantage of new business opportunities, grow their portfolio, revenues and continue to fill a gap in consumer credit.

“Delivering a credit facility for our consumer finance client was particularly challenging and rewarding at the same time,” said Chuck Doyle, managing director of Business Capital. “Getting this company funded required out- of –the- box financing and expertise, which BizCap has the reputation of delivering to clients for over a decade. Our success means families who might have had difficulty accessing cash or credit will now have the opportunity to buy a pet and supplies.”