Sandwich Shop

Business Stage
New Business
Industry
Restaurant/Food
Time In Business
6 Years
Employees
30
Equipment Type
Restaurant
Ticket Size
$50K - $70K
Equipment Purpose
Expansion into a new location
Weaknesses (Cons)
  • Zero residual value of equipment
  • Restaurant industry
  • New location means an unproven market
  • According to interim financials, company does not appear to cash flow due to high levels of debt
  • Equipment already delivered and installed two weeks earlier, so checks are reimbursed directly to the lessee which increases risk of fraud
Strengths (Pros)
  • Lessee has 6 years of related experience owning and operating restaurants of this kind
  • Equipment is for the fourth location under same ownership
  • After interviewing, we discovered that debt is on longer terms and company is profitable and cash flowing with our additional debt
  • Good levels of organization
  • Blanket lien on one of the other three locations
  • Outside military income of over $100k each for 2 of 4 PGs
Creative Solution
$65,000, 36 months, 10% security deposit, 4 PGS, Cross-Corp Guarantee of related entity, Blanket Lien on Cross-Corp
Team Sales Rep
Mike Wright