Supported by a larger kitchen, the company has successfully begun expansion into the Massachusetts market.
Background
After establishing strong customer loyalty within its Rhode Island base, the company’s management decided to expand their food deliveries to Massachusetts. A larger production capacity would require a significant capital investment in food service equipment like stoves, ovens, refrigeration space, and facility improvements. However, being a young company, they could not show the financial results or have the collateral needed to obtain a traditional bank loan.
Our Solution
Upon meeting with the management team, what captured BDC’s attention was a compelling trend of revenue growth and a detailed business plan engineered by a thoughtful and disciplined management team. Based on those factors, BDC secured a lender to provide a $600,000 five-year term loan. Additional freezer space was soon required, and BDC stepped up with an additional $120,000 term loan to keep up the positive momentum.
Results
Supported by the larger kitchen, the company has successfully begun expansion into the Massachusetts market, where its user-friendly, high-quality meal plans have been well-received. As the management team grows in experience and depth, they excitedly consider what – and where – is the next opportunity?