Dealstruck Funds CrowdLine Line of Credit for Brix Beverage
Dealstruck, Inc., an online crowdlending provider, has committed an $80,000 "CrowdLoan" term loan for San Leandro, Calif.-based Brix Beverage.
The growth capital provided through the Dealstruck platform, which connects growing small businesses with accredited investors, enables Brix Beverage to purchase equipment and service vehicles, and to manufacture its own line of beverage mixes for sale to restaurants and bars.
"There aren't many solutions for entrepreneurs like me -- younger businesses with great financials and cash flow," said Sky Pace, founder and CEO of Brix Beverage. "Dealstruck asked a few details about my balance sheet and within days provided us with a loan that had incredible terms, was healthy for our business and was completely transparent. Thanks to Dealstruck, we'll be able to grow in a sustainable way that's also congruent with the way we operate our business."
Pace bought a portion of the fountain distribution sector of the Dr Pepper Snapple Group in 2013, called the 7Up Bottling Company of San Francisco, and renamed the entity Brix Beverage. Brix provides bars and restaurants throughout California with brand-name carbonated soft drinks, juices, mixers and teas, fountain products and its own proprietary brand of specialty drinks.
Upon acquisition of the company, Pace needed to continue to service its 1,200 existing customers. He wanted to grow his product offering through manufacturing the proprietary line of products and purchase service vehicles. He also wanted to purchase food service equipment to lease to restaurant businesses for additional profit. The term loan from Dealstruck made that possible.
"There are so many businesses like Brix Beverage, which are growing and profitable with strong cash flow, but unable to secure assistance from banks," said Ethan Senturia, co-founder and CEO of Dealstruck. "Sky has had great success growing his company. We created Dealstruck to help businesses like his secure loans at prices they can afford, allowing them to scale as quickly as their structure will allow. At the same time, investors on our platform benefit from the relatively short terms and higher yields typical of small business lending relative to other fixed income asset classes, while selecting which businesses they want to assist. Our system prepares both borrowers and lenders for success."
Using the Dealstruck platform, businesses and investors create online profiles, and Dealstruck screens loan applicants' credit information. Once approved for the platform, investors can select which loans to fund depending on their own interests. The result for borrowers is an easier way to access affordable capital quickly, and lenders get a quick return on their investment.