How TFP arranged a line of credit for a company with only 1 year trade history
A Queensland based client had a 1 year old flooring company . There were 2 partners involved in the business . Partner A owned a home and Partner B had no property assets . At the time of launching the business , Partner A ( who had the property assets ) was able to use the equity in his home to secure a line of credit from the bank .
After a period of time , it was felt by both partners that personal assets should be removed as security - and the business would have to borrow funds on its own credit strength .
The problem was that with only 1 year of trading history , relatively low profits and no asset backing – there was no lender in Australia that could provide a solution , to enable the company to obtain a line of credit .
Trade Finance Providers arranged a line of credit of $150 000 USD for the client to use for imports of containers of flooring on a 120 day basis .
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