Our client manufactures plastic injection molding for the industrial and electronics industries. He has been in business for 20 years. Gross sales for 2014 were $960,000, after a dip in 2010 and slow steady growth since the Great Recession. Continued offshore competition requires upgrades in machinery to maintain tight margins.
- Inventory of current equipment with updated depreciation schedule.
- Purchase new equipment with increased automation features.
$750,000 commercial line of credit for equipment purchase.
- Preparation and submission of tax returns for 2014.
- Created Executive Summary with a detailed study on manufacturing.
- Developed and implemented Debt Service Coverage (DSC) Ratio.
- Monitor monthly Profit & Loss Statements in accordance with DSC Ratio.
- Submission of loan package to banks.
A commercial line of credit approved for $600,000 at 5.125% with an amortization period of 20 years and adjustment period of 5 years.