A newly incorporated animal health products distributor had an opportunity to make a significant bulk stock purchase – around $180,000 of stock expected to generate approximately $400,000 in sales.
With only around 12 months of trading and no filed financial statements, Line Capital needed to build the picture using current trading data, the economics of the stock purchase, available security and the information provided through the assessment process.
The business initially came to Line Capital seeking $150,000 towards the stock purchase. When that level of lending wasn’t available, the funding requirement was reworked and the amount required from Line Capital came back to $50,000.
The facility would help complete the purchase and bridge the working-capital requirement until the stock was delivered and sold.
A GSA-secured term loan was fit for purpose, supported by guarantees from the director and a related company.
With no meaningful filed financials available, bank transaction data provided evidence of how the business was actually trading. Updated information received during the application showed revenue and serviceability continuing to improve.
The borrower also made a difference to the assessment. Each time Line Capital had a question, they came back with what was needed – including forecasts, supporting information and further detail. That responsiveness helped give the team a much clearer proposition to assess.
Trading strengthened between the February 2026 initial assessment and the May 2026 reassessment. Revenue increased from $392,767 to $492,964, while bank-data-adjusted EBITDA increased from $35,349 to $44,367. EBITDA margin remained at 9.0%.
There was no pre-existing debt facility identified, and projected DSCR including the new facility was 1.78x against a 1.30x policy threshold.
Get in touch with us to start your application for a business loan today.
