 In early 2017, Radix funded a $350,000 SBA debt consolidation and working capital loan for a Health and Fitness Club. Eighteen months later, the club’s owner called and asked if we could help him apply for additional capital. Because Radix had previously funded the business on great rates and terms, even though he did not have collateral to offer, he did not even bother applying to his local banks before coming back to us. BORROWER’S ISSUES
RADIX'S SOLUTION Most banks would never consider lending a second position SBA loan to a business without collateral, especially so soon after it had obtained a first. But Radix was more than happy to tackle the challenge. The business was growing steadily, it was profitable, and the owner made all his payments on the first loan on time and maintained great personal and business credit. From our perspective, the first loan was such a success, it should not have been a barrier to additional financing. Unlike many other SBA loan providers, Radix is not afraid of second position SBA loans. Just because the borrower took out smart money once does not mean he should be barred from borrowing wisely again.
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 After he had been turned down by multiple local banks, the owner of a biodiesel company contacted Radix hoping to secure $2 million for equipment and working capital. The potential borrower could not understand why lenders were only willing to fund him at high interest rates. After all, his business was grossing over $10 million per year, and he had over $8 million of equipment he had offered to pledge as collateral. BORROWERS’ ISSUESToo much short term debt RADIX'S SOLUTIONAfter Radix took a look at his financials, we were able to easily identify the borrower’s issue. Although he had great credit and steadily-increasing revenues, he had already taken out over sixty five separate equipment loans and business credit cards totaling around $3 million, and each one demanded high monthly payments. All told, the borrower was paying over $120,000 per month just to service his debt. Our solution was simple: Radix consolidated the borrower’s existing loans and lengthened the amortization to ten years. Even after providing the additional $2 million he had been looking for, we were able to reduce the borrower’s monthly payments by $40,000.
 When a long-time convenience store manager decided to purchase a store for himself, he reached out to several different banks to help turn his dream into reality. He came away from those meetings discouraged. He only had enough money for a 10% down payment (most banks require at least 20%) and did not have any outside income to support him if his new business got off to a rocky start. Luckily, someone referred the manager to Radix, where we specialize in helping borrowers just like him. BORROWER’S ISSUES
RADIX'S SOLUTIONAlthough the loan application had some obvious deficiencies, Radix prefers to focus on the positives of every potential client. The borrower had a successful history managing convenience stores and had demonstrated strong financial discipline by saving up for years to reach even the 10% down payment he could offer. In addition, because he was purchasing both a property and the business on top of it, the loan was collateralized. Despite the fact that so many local banks had refused to work with him, Radix was able to -- in the borrower’s own words -- make his “dreams come true.”
 When a successful veterinarian needed to consolidate six business credit cards and a high interest loan into a single payment, he was declined by multiple banks. He had good credit, a long-standing practice, and his profits were high. He could not understand the problem and almost gave up on financing completely. Luckily, he received some Radix marketing material, and gave us a call to try his luck one more time BORROWERS’ ISSUES
RADIX'S SOLUTIONRadix was able to quickly identify the problem. Many banks prefer not to refinance borrowers with so much debt or move into second position behind an existing SBA loan. Radix, meanwhile, does not hesitate to do either. We love to consolidate debt for growing businesses and are happy to place a lien behind another SBA loan. This borrower was our ideal client and had very strong financials. Before our loan, the borrower was paying $7,400 per month toward his half-dozen credit cards and high-interest loan. After we helped him refinance and provided an additional $100,000 of working capital, his monthly payments were just $4,150. The veterinarian was thrilled to get out of what could only be described as a hairy situation.
 When the owner of an HVAC installation company applied for $350,000 of working capital, he was turned down by multiple lenders. Most banks are reluctant to lend so much to a small business without any collateralization. Compounding the potential borrower’s challenge, his personal net worth was low and his credit score hovered just above the SBA’s minimum threshold. BORROWER’S ISSUES
RADIX'S SOLUTION Despite the lack of personal or business real estate collateral, the borrower’s business was successful and - most importantly - profitable. Further, while his working capital needs were large, he could offer a detailed explanation for how he would use the cash infusion. While most banks focused on the borrower’s collateralization and scoffed at lending him so much cash, Radix looked at the overall picture and saw just how much the business stood to benefit from just such a boost. The borrower was blown away by just how breezy Radix helped make the process.
 When the owner of a boat rental company contacted Radix to consolidate nine separate high interest loans into one, he had already been declined by many local banks. His credit score was below 640, and he did not have any commercial real estate to offer as collateral. BORROWERS’ ISSUES
RADIX'S SOLUTIONDespite the trouble he encountered while trying to refinance, the borrower ran a very profitable business. In addition, his low credit score was mostly the result of having taken out so many loans and not because of anything more significant. Although he had been trying to refinance for years without any success, Radix was able to help consolidate all of his debts into a single term loan and lower his monthly payment from more than $15,000 a month to just $5,708. You might say that thanks to Radix, the borrower’s business can finally stay afloat.
To learn more about the different financing options we offer, contact a Radix representative today.  When the owner of a Health and Wellness Center contacted Radix to refinance $120,000 of high interest debt and obtain additional working capital, he had already been turned down by three local banks for a Small Business Administration loan. He was wary of wasting more time and was very skeptical Radix could perform any better than the banks were not able to help him. BORROWERS’ ISSUE
RADIX'S SOLUTIONWe were happy to explain that Radix is different from your typical bank. While most banks require strong collateralization, Radix can help businesses without any assets obtain very affordable rates. Once the borrower understood what separates Radix from his other options, he became eager to proceed as quickly as possible. He submitted all of the documents we needed within one week, and we were able to close the loan just one more after that. The borrower was delighted by how quickly we were able to help him save money and secure the funds he needed to expand.
With over $200,000 of extra working capital in his pocket, he is still paying $1,800 less than he had been to the high rate lenders. To learn more about the different financing options we offer, contact a Radix representative today.  When a concrete company suddenly needed to buy a brand-new truck for $220,000, its bank declined to lend because the owners had mediocre credit. Although the bank graciously offered to reconsider its decision if the owners managed to raise their credit scores, they could not afford to wait. Thankfully, their loan officer suggested that Radix could provide a faster alternative. BORROWERS’ ISSUES
RADIX'S SOLUTIONWe had to get a little creative with this one. Because the borrower’s credit was low, Radix needed to identify a lender that was willing to take the truck itself as collateral. Considering these two factors, Radix was able to present this deal as a no-brainer, and we helped the concrete company on the road in less than a week!
To learn more about the different financing options we offer, contact a Radix representative today.  After a year of rapid growth, the owner of an RV rental company had a good problem: he had more customers than inventory. So he wanted to purchase additional motorhomes to satisfy the unexpected demand. Unfortunately, he had taken out an SBA loan just one year before, and his bank would not extend additional capital after having already lent so much so recently. BORROWERS’ ISSUES
RADIX'S SOLUTIONAlthough the borrower’s credit was low, there were no major marks against him. Despite a lack of real estate to use as collateral, the borrower had a fleet of RVs he could offer instead. In short, his was an easy case. We consolidated all of his debt into one SBA loan, adding $600,000 for the purchase of brand new RVs while lengthening his amortization. Thanks to Radix, his business was back on the road in no time.
 After her longtime tenant left, one restaurant property’s owner decided that instead of finding a new one, she would simply start her own Chinese buffet in the vacated space. Unfortunately, most banks are wary of lending to start-ups, and even the bank that had helped her purchase the property in the first place was reluctant to to renew her note when it came due. Thankfully, the bank knew what to do with a good client it couldn’t help: it referred her to Radix. BORROWERS’ ISSUES
RADIX'S SOLUTIONWhile the property owner had never owned a restaurant before, she had managerial experience in the industry and created a solid business plan with very profitable and well thought out projections. More importantly, she was able to demonstrate a track record of profitability during her first few months of operation, before she came to us for help. Radix was able to finance over 100% Loan to Value on the property for a total of $170,000 in working capital, which the business owner used to market the revitalized business and purchase much-needed furniture, fixtures and equipment. After having heard so many “no”s from half a dozen different banks, the borrower was thrilled to finally hear a “yes”.
To learn more about the different financing options we offer, contact a Radix representative today. |
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