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Our client is a minority-owned wholesale distributor of flowers in downtown LA. Revenues for 2015 were $1.8 million; however, high-cost vendor credit drove the COGS 25-30% higher than cash purchases at market standard rates, resulting in COGS at $1.6 million rather than an optimal $1.25 million. Tax returns for 2015 reported the company’s EBITDA at $200,000 with net profits of $50,000. The consequent tax liabilities—combined with the high COGS—unsurprisingly impacted the company’s cash flow, leading our client to seek access to capital in order to maintain operations at the requisite standards. Lacking any accounting package or financial reports, he was denied credit at Tier I and Tier II banks. As with our other clients, he similarly turned to alternative lenders and quickly received an $80,000 loan at 9-15% interest (depending on repayment period), amortized over 12 months with significant prepayment penalties. Payment terms are $350 per day, five days per week, with the cost of capital at $35,000 for an $80,000 loan. Needless to say, this resulted in impacted cash flow and lower profit margins. Upon beginning our engagement, we immediately went to CDFIs and other nonprofit lending institutions to refinance the existing debt; he received an approval in February 2017 with funding in late April for a term loan of $120,000 amortized over five years. 


Refinance high-cost loans.


$120,000 term loan.


  • Preparation and submission of tax returns for 2014-16.
  • Created Executive Summary.
  • Implemented Quickbooks Online accounting package.
  • Developed and implemented Debt Service Coverage (DSC) Ratio.
  • Monitor monthly Profit & Loss Statements in accordance with DSC Ratio.
  • Submission of loan package to banks.


A term loan approved for $120,000 at 7.125% with an amortization period of 5 years.


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