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Case Study

Catering and food truck company founded in 2015.

 

Milestones included structuring the corporation/assets to reduce liability and distribute risk, the preparation and submission of tax returns for 2015-18, implementation of accounting package, development and implementation of Debt Service Coverage Ratio (DSCR), purchase of new vehicles, currently seeking commercial property as base for central kitchen.

Sector

Food and Beverage

Client Since

2016

Capital Funded

$175,000

Our client is a minority-owned catering and food truck company. Upon graduating from the culinary academy at LATTC, he purchased a food truck and negotiated a permanent spot at a prominent local brewery. Fast growth and increasing opportunities led to new vehicles and a well-received catering operation. Upon beginning our engagement in 2016, we focused on structuring the corporation and formalizing operations. In 2016 we facilitated an SBA-guaranteed loan of $150,000 to upgrade commercial kitchen, add vehicles, and negotiate terms with vendors. From a one-person operation in 2015, the company grew to 3 food trucks and 7 employees by the end of 2018.

Our History

2016

Onboarding

Assessed historical financials, calculated DSCR, filed previous year’s tax returns.

2016

$25,000

Microloan to purchase raw goods and negotiate terms with existing vendors.

2017

$149,000

SBA-guaranteed loan to purchase equipment, negotiate terms with vendors, and provide working capital.

2018

Cap Ex

$100,000 self-funded capital expenditures to update equipment.

2019

$600,000

Looking for commercial real estate to establish central kitchen.

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