Radix Finances Autoshop With Tax Lien for Second Time

Often, borrowers come back to Radix for seconds, and understandably so. Why spend time searching for financing when Radix has already proven to be a reliable and trusted source? When the owner of an auto repair shop, who had just financed an SBA (Small Business Administration) loan to open a second location, wanted to purchase new state-of-the-art equipment, he knew exactly where to turn: the same company that had helped him obtain that original SBA loan.

BORROWER'S ISSUES

• The state of Washington has a $400,000 tax warrant registered against the business.
• The business was highly leveraged with the cash flow of the first location supporting the mortgage of both.
• The business had no collateral to offer, as the property was already leveraged at 90% LTV (Loan to Value).

RADIX'S SOLUTION

​While the business could not offer collateralization, it still enjoyed a positive cash flow. No bank would ever consider offering uncollateralized financing to a business with such a large tax warrant, and surprisingly, most non-traditional lenders would not either. Luckily, Radix was able to help yet again.
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We were able to offer the client $200,000 in working capital, uncollateralized, on a three year term at 11.19%, just two weeks after we started working with him again. With Radix’s help, the second auto repair shop location is now open for business and operating with the same state-of-the-art equipment as his original location. 

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