Hello everyone,
I am trying to restructure the financial position of my company and I need some advice. My company is a service-disabled, veteran-owned small business flooring subcontractor for general contractors working on federal construction projects. I have four employees, one admin assistant, one estimator and two in "sales" or project management. Our monthly overhead costs are around $4,000.00 with out payroll or interest.
The business has been running for just short of two years. In the first year we were in business for only two months and had no income. In the following 12 months our total income was just south of $40,000.00 but so far this year our gross sales are close to $900,000.00 and we expect to gross close to $1.75mil by the end of the year.
I started the business using my personal credit which has been a combination of credit cards, a line of credit and some equity out of my home along with one credit card in the company's name. When is came to the purchase of material for the projects, I used the credit cards and cash advances in the beginning to establish relationships with the vendors. This has led to a number of Net 30 accounts or we are able to negotiate some type of terms based on the situation.
My goal is two fold. First, I would like to try and move the majority of the debt to the company to start establishing some history. All of the bills regardless of what type of an account has been paid with a company check. The second half of my goal would be to have capitol in the bank to reinforce the company's ability to bond projects. The larger the bond capability the more projects we can pursue and the more money we can make.
I'm not too sure if I have a case for the traditional approach of refinancing or if I should focus my pursuits on a more creative solution? Thanks for taking the time to read my post.
I am trying to restructure the financial position of my company and I need some advice. My company is a service-disabled, veteran-owned small business flooring subcontractor for general contractors working on federal construction projects. I have four employees, one admin assistant, one estimator and two in "sales" or project management. Our monthly overhead costs are around $4,000.00 with out payroll or interest.
The business has been running for just short of two years. In the first year we were in business for only two months and had no income. In the following 12 months our total income was just south of $40,000.00 but so far this year our gross sales are close to $900,000.00 and we expect to gross close to $1.75mil by the end of the year.
I started the business using my personal credit which has been a combination of credit cards, a line of credit and some equity out of my home along with one credit card in the company's name. When is came to the purchase of material for the projects, I used the credit cards and cash advances in the beginning to establish relationships with the vendors. This has led to a number of Net 30 accounts or we are able to negotiate some type of terms based on the situation.
My goal is two fold. First, I would like to try and move the majority of the debt to the company to start establishing some history. All of the bills regardless of what type of an account has been paid with a company check. The second half of my goal would be to have capitol in the bank to reinforce the company's ability to bond projects. The larger the bond capability the more projects we can pursue and the more money we can make.
I'm not too sure if I have a case for the traditional approach of refinancing or if I should focus my pursuits on a more creative solution? Thanks for taking the time to read my post.
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