Use Case Series: Business Loan Option For Jay’s Gourmet Cookery

Scenario: Jay’s Gourmet Cookery started out as a home based business which busy a bartering kitchen for its aliment preparation. The owner, Jay, was searching to aggrandize so he can accept his own clandestine kitchen and aggrandize his operations to a abounding time operation.


Business Location: New Orleans, LA

Sales: $45,000 per year

Customer Base: Commercial, Business to Business Sales (80%), Residential, Business to Consumer (20%)

Terms of Sale:

  • Bartering – Net 30 days
  • Residential – 50% deposit, antithesis at cessation of event

Business Structure: Limited Liability Aggregation (LLC) with both Jay and his apron as the sole shareholders.

Additional information: Jay has been alive abounding time and operating the Cookery on the weekends and holidays. He intends to leave his abounding time job to accompany the abounding time operation of his accouterment business. Jay’s apron works with him and will be allowance as abundant as accessible but will not be abrogation her abounding time job area she works at a Able Services Aggregation as a CPA and is authoritative $105,000 per year. They accept a baby mortgage and actual little claimed debt. Both Jay and his apron accept acclaim array of 721 and 732 respectively.


Jay affairs to hire a clandestine able kitchen and advantage the Bartering Client abject he currently has to carter contest during the week. He has already accepted that his Bartering Barter are accommodating to accommodate added business to him if he can fulfil the need. Jay aswell wants to access a specialized console barter for alteration the food, replacing the ancestors car that has been acclimated up to now.

He will charge costs for the car acquirement and will charge to accounts new accessories that will be installed in the new abode of business. Plus Jay wants to do some bartering and promotions to access acquaintance of his business.

Jay and his apron wish to apperceive what options are accessible to them.


The best options for Jay’s Gourmet Cookery are as follows:

Unsecured Business Loan: Back the assets of Jay’s has not been that abundant to this point, accepting a Full-Doc Business Loan will not accommodate abundant clamminess to the aggregation so the best advantage accessible would be to do a Stated Assets Business Loan area the assets analysis will not be appropriate and back their acclaim array are over 720 and accept no behind accounts or adverse acclaim history over the endure several years, they would be able for up to $50,000. These funds can be acclimated for any business accompanying need, such as promotion, bartering and accepted operating expenses.

Equipment Leasing: As Jay’s apron has been alive over the endure years and is traveling to abide to plan alfresco of the accouterment business, the assets his apron has been accepting will abide and will be acceptable to account the transaction for the new kitchen accessories and console truck.

Accounts Receivable Finance: A band of acclaim may aswell be issued to Jay’s aggregation area all bartering sales (B2B) will be acceptable to accept advances at a amount of about 85% of the face amount of the invoices. Jay’s barter will pay the accounts aggregation anon so there will be no application of this costs adjustment and the band of acclaim will abound as sales grows. This way there will be allotment accessible to awning costs of the operation (rent, supplies, wages… ) until the B2B barter pay their invoices.


The book accustomed is a archetypal book for abounding arising companies that outgrow their “home-based business” boundaries and aggrandize to accommodated the needs of the market.

These costs options are applicative to abounding altered business structures and do not alone affect to accouterment businesses, but you can see how the solutions provided do fit the business need. It is not appropriate that anniversary advantage presented be acclimated for anniversary company, but a lot of business owners would agree, “Options are good!”

Note: The aggregation advice in this case is fictional. This commodity is meant to allegorize costs options accessible for growing companies.

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