RADIX FUNDS LIQUOR STORE IN NEED OF DEBT CONSOLIDATION

Credit card debt can often get out of hand for small business owners, and when that happens, banks are not always able to assist.
​
When a friendly banker was unable to help a local liquor store obtain a credit card debt refinance to lower the liquor store owner’s rate, the banker gave Radix Financial Group a call. We saw the potential immediately. Not only were we able to refinance $106,000 worth of credit card debt, but we were able to help the borrower obtain $19,000 in working capital as well!

​​BORROWER’S ISSUES

• Neither the borrower nor the business had any real estate collateral to offer.
• The borrower underwent a divorce earlier in the year, and large alimony payments (extracted from the business’ profits) were due on a monthly basis.
• The business showed widely-fluctuating income and profit over the past three years, with variation as high as 16% from one year to the next.

​​RADIX’S SOLUTION

While most banks looked at the borrower’s recent divorce and saw a major red flag, Radix was able to appreciate the business’ underlying value. The liquor store is a longstanding community fixture, and has turned a profit for five years running.

Further, we saw that the borrower would be able to free up some much needed cash flow with an SBA express refinance. Previously, the borrower was paying off his credit card debt with a minimum monthly payment of $3,443. With a new interest rate of 6.75%, we lowered his monthly payment to $1,388, thus freeing up nearly $25,000 for the tavern owner to invest in making his business more profitable on an annual basis.

To learn more about the different financing options we offer, contact a Radix representative today.