The client could not obtain a $2.3M expansion loan approval for the proposed new carwash location.
The Company: The client is a limited liability corporation (LLC), incorporated under the laws of Louisiana on 2008–essentially an experienced, but small tunnel car wash start-up.
Ownership: The owners and are majority stockholders with a 100% ownership. Operational headquarters are in Lafayette, Louisiana.
Loan Approval Factors
- Management Experience: The company is a start-up tunnel car wash which will be located in Lafayette, LA. Historical performance demonstrates the owners’ ability to run these businesses successfully.
- Capitalization: The Company anticipates the need for financing as follows:
- Use of Funds: Real Estate, equipment $2,300,000
- Source of Funds: Loan $2,300,000
- Loan Request: A start-up tunnel car wash located in Lafayette, LA. Total dollar requested $2,300,000, with a twenty (25) year amortization.
- Collateral: First mortgage on land and improvements valued at $2,300,000 on land with no mortgage debt.
Client could not obtain funding for $2.3 million on a new construction on a car wash in a rural area.
Veillon located a USDA bank that could approve the expansion loan. In addition, we were able to prove the traffic count though DOTD.
The End Result
The client obtained $2.3M expansion loan approval for the proposed new car wash location.
Is your situation similar? Contact us today to find out how we can help you.