Small Business Loan Case Study - Prairie Creek Beverages | SnapCap

Case Study Prairie Creek Beverages

Michael Howard, CEO of Prairie Creek Beverages, started his company in 2013. An entrepreneurial success, the wine and spirits company experienced 600% sales growth in 2014 and expanded its footprint to 35 states. The beverage company shows no signs of slowing down, boasting 35% greater sales in January 2015 than the same period in 2014.

  • Loan Amount: $200K
  • Term: 1 Year
  • Use: Inventory & New Product Line
  • Industry: Distillery & Manufacturing

The Challenge

Although most small companies celebrate growth, they often struggle with meeting the financial demands of their success. Michael Howard found himself in this position during his second year of heading the wine and spirits company, Prairie Creek Beverages. Michael’s company was expanding rapidly and needed swift funding to keep pace with the company’s success. Unfortunately, a traditional bank loan was out of the question as it normally takes up to 100 days to process an application. Michael also knew that because his nascent company couldn’t provide a lengthy credit history, he probably could not get approved for the funds he needed. “While the company’s top line looks great, most traditional lenders shy away from opportunities unless the company can boast a strong profit history,” said Michael.

While the company’s top line looks great, most traditional lenders shy away from opportunities unless the company can boast a strong profit history.

The Solution

On the recommendation of others, Michael researched alternative lending options online. Although initially hesitant, he was quickly impressed with SnapCap’s online reputation and recognition, and applied for a loan.

“I entered the application process with the idea that online lending was fairly cold, generic and inflexible,” said Michael. Within 48 hours of applying for a loan with SnapCap, his opinion was reversed. “I completed a straightforward and relatively simple application process, and within a couple of days SnapCap contacted me to discuss my business,” he added.

Michael said he was especially pleased with SnapCap’s customer service, describing the loan process as a nice balance between due diligence and timely execution. “The representative was personable, flexible and willing to work with our company’s special needs. While going through a loan qualification, one can feel really small and inadequate- it was not like that at all with SnapCap,” said Michael.

The representative was personable, flexible and willing to work with our company’s special needs.

The Result

Michael obtained a one-year loan of $200,000 from SnapCap to meet Prairie Creek Beverages’ immediate needs. The company has made on-time payments and “business is only growing.” Michael commented that he couldn’t have achieved this success without SnapCap’s help and support. “From the loan application, process and payments, SnapCap educated and guided us throughout it all. I would definitely work with them again,” Michael concluded.

...SnapCap educated and guided us throughout it all. I would definitely work with them again.

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