Dr. Anderson already had some higher rate equipment financing debt to the tune of about $393,000. He is a well-known hair restoration specialist in the Southeast that has two clinics. We were able to secure him a Small Business Association (SBA) loan to refinance his existing equipment debt of $393,000 and also get him $263,000 in new equipment and working capital. The total financing amount was $656,000.
Doesn’t sound too exciting…in fact, kind of boring until you see what this did for his clinic. The new loan of $656,000, which included the refinancing of existing equipment for $393,000, financing for the new equipment, and working capital of $263,000, was actually a savings of $3,900 per month over and above his old payment which just consisted of the existing equipment.
At the same time, because the SBA was making loan payments for borrowers under the CARES act, he was able to take advantage of that as well. We’re talking about a savings of almost $50,000 per year. Not to mention the additional income he was going to generate from the new equipment and working capital.
Pretty amazing when you think about it. By just reaching out to someone, we made a big impact on his cash flow. One thing to take away from this deal was to always be open to better ways of doing things because they just might exist. Dr. Anderson is going to expand his clinic and actually save money while doing it!