Dr. Trey Rumph, who bought the Balloon Factory on Brainerd Road last year, got startup financing through Rebirth Financial. In addition to balloons, the store sells silk flower arrangements, such as the one he is holding, and matching paper tablecloths, plates and napkins.Chattanooga pharmacist Trey Rumph thought he had a prescription for success last year when he bought most of the Balloon Factory in Brainerd to supplement his job at CVS drugstores.
But even with an enviable credit rating score of more than 750, Mr. Rumph wasn’t able to secure bank financing to buy the needed supply of costumes, streamers, wedding supplies and balloons to help the Balloon Factory meet its usual fall rush.
“I went to several banks, but they turned me down for working capital to improve the business even though this is a solid 28-year-old business with a lot of potential,” the 26-year-old businessman said.
Rumph turned to a startup lending service in New Orleans known as Rebirth Financial to get his small business loan. The community-based lender, which expanded into Tennessee last year, raised $10,000 to lend to Rumph’s Balloon Factory in only a week. More than a dozen individuals chose to participate in the loan after reviewing the business plan on Rebirth’s web site.
“The loan helped me meet the seasonal demand last fall and make some of the needed improvements in the business which should pay off over time,” Rumph said.