National Business Capital, the nation’s leading FinTech lending marketplace which streamlines the application process and helps business owners unlock access to capital, today announced it secured a $4 million transaction during the pandemic for a young, fast-growing eCommerce distributor selling collectible toys to big brand retail chains.
The recently funded client, an eCommerce distributor specializing in wholesaling with Fortune 100 retail chains and in eCommerce transactions, suffered from the same cash flow-related growing pains that hinder many small businesses. Despite undergoing massive growth, the 1-year-old business lacked the working capital needed to meet demand and continue capitalizing on additional opportunities.
The growth was simply too fast for traditional banks to consider financing or small business loans. Due to the pandemic, banks have put additional small business lending restrictions in place, making their guidelines tighter than ever.
By understanding the business opportunity to drive revenue and explaining it the right way to the lender’s underwriting team, National’s team helped the client secure an immediate $1 million in working capital, while completing an additional $3 million revolving credit facility.
This financing will enable the business to continue filling new orders as they come in, instead of turning down sales due to delays in receivables. National utilized the value of the client’s cash flow, receivables, and inventory to secure the financing when most lenders would normally only consider approving a transaction of this size with real estate collateral.
Paul, the CEO of the eCommerce distributor, is grateful to National not only for securing funding despite significant roadblocks in this environment but also for uncovering a new financial model that will help them scale as they continue to fill large orders.
“As a new, rapidly growing company, our ability to secure meaningful and cost-effective funding was extremely difficult. Joe and his team were tireless in finding the perfect Financing Partner for our growing company. We simply would not have been able to secure the deal we have without Joe and the National team. I have already referred 4 other companies to Joe and will continue to lean on him and his team for the foreseeable future. Sincere thanks to Joe Camberato and his team, who have become our key financial partners.”
Despite the economy’s current state, the collectible toys industry continues to thrive as people invest in the spaces where they live and work. Without the additional funds secured by National, Paul’s business would have been forced to slow its momentum and turn down sales.
Even with the second round of PPP funding dispersed, small businesses continue to suffer due to severed revenue streams and restrictive regulations, but also a lack of access to much-needed growth capital beyond PPP funding. To reach normal operations by the end of the pandemic, many businesses are actively seeking capital to resume growing immediately.
“We’re inching closer to the end of the pandemic, but small businesses still need immediate financing to both cover basic expenses and capitalize on profitable opportunities dangling right in front of them,” said Joe Camberato, CEO of National Business Capital.
“When it comes to navigating today’s economy, there are two types of small business owners: the offensive players seeking out opportunity, and the defensive ones waiting for COVID-19 to pass. The right time to get back to growing is now!”
As people receive vaccinations, local governments lift restrictions, and optimism rises, small businesses have mobilized to get back to business. Many are seeking funding to cover the costs of growing before restrictions are eliminated for expenses like rebuilding, purchasing inventory, ramping up marketing, and more.
According to Camberato, the small businesses growing the fastest are the ones that need financing the most. Camberato credits Paul’s success to his strategic use of both a revolving business line of credit and small business loans as a way of covering cash flow gaps and pursuing opportunities, especially as SBA loans remain difficult to qualify for.
“Most entrepreneurs have a thorough understanding of their business and industry, but don’t always understand financing and all the options available to them. With the right option, financing can be used as a tool to grow without giving up equity,” said Camberato. “Growing businesses with a high volume of sales need far more capital to reach the next level than businesses solving challenges.”
“My team and I have tremendous respect for America’s small business owners, and we’re here to help them when they need it most. I am so proud of my team and want to thank them for all their hard work in pushing this transaction forward, and, more broadly, working around the clock helping America’s small businesses get back to business,” said Camberato.
The team at National Business Capital is trained not only to help businesses access funding quickly, but to help them find all of the relevant solutions available based on their needs and goals. Some businesses may qualify for one or two options, while others could receive many. With products from over 75 lenders available on our platform, a thorough understanding of the options available could make the difference between an approval and a decline.
“We train and continue to educate all of our Business Financing Advisors to understand the various lending products available on our platform. It’s my team’s meticulous attention to detail, thorough understanding of our well-balanced lender mix, and commitment to being the partner small businesses need that have helped us reach our high success rate and build a proven track record.”
As the nation moves forward, Camberato is eager to continue helping small businesses access financing and revitalize the economy.
”Regardless of the challenges that businesses are facing right now, we live in the land of opportunity, and my team is here to help them capitalize on it.”
About National Business Capital
National Business Capital is the #1 FinTech marketplace offering small business loans and services. Harnessing the power of smart technology and even smarter people, we’ve streamlined the approval process to secure over $1 billion in financing for small business owners to date.Our expert Business Financing Advisors work within our 75+ Lender Marketplace in real time to give you easy access to the best low-interest SBA loans, short and long-term loans, and business lines of credit, as well as a full suite of revenue-driving business services. We strengthen local communities one small business loan at a time. For every deal we fund, we donate 10 meals to Feeding America!
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