Conventional Bank Loan Application Package

Pacific Tech Consulting Inc. is an 8-year-old IT consulting and managed services firm headquartered in Portland, Oregon. The company provides network infrastructure design, cybersecurity services, cloud migration, and ongoing managed IT support to mid-market businesses across the Pacific Northwest. With 15 employees, an 780 credit score, and $1.44 million in annual revenue, Pacific Tech has established itself as a trusted technology partner for companies with 50-500 employees.

Pacific Tech is requesting a $250,000 conventional bank term loan to fund office expansion and strategic hiring. The funds will be allocated to office build-out on a newly leased second floor ($95,000), technology infrastructure upgrades ($45,000), first 6 months of salary for 3 senior consultants ($80,000), and marketing/business development ($30,000). The expansion increases the firm's delivery capacity by 40%, enabling it to pursue a pipeline of $600,000 in identified opportunities that current staffing cannot support.

The company's financial position is exceptional for a conventional loan: $312,000 net operating income, DSCR of 3.77x (nearly 3 times the typical 1.25x threshold), 21.7% net margin, and 8 consecutive years of profitability. Revenue has grown at 15% CAGR since 2020, driven by increasing demand for cybersecurity and cloud services. The borrower offers $412,000 in business asset collateral plus a personal guarantee, resulting in a conservative 60.7% loan-to-value ratio.

Pacific Tech Consulting was founded by David Park after 12 years as a senior systems architect at Intel. The company began as a one-person consulting practice focused on network design and has grown into a full-service IT consulting firm with three practice areas: infrastructure, security, and cloud services. Pacific Tech holds a GSA Schedule contract and is a Microsoft Gold Partner, Cisco Premier Partner, and AWS Advanced Consulting Partner.

Industry benchmark for IT consulting net margin: 15-25%. Pacific Tech operates solidly within the upper range, reflecting efficient labor utilization (target 75% billable rate, currently achieving 78%) and a growing managed services revenue stream with 90%+ gross margins. The shift toward recurring managed services revenue (now 30% of total) reduces revenue volatility and improves predictability.

Each new consultant is expected to generate $180,000-$220,000 in annual billable revenue at a 78% utilization rate. The 3 hires represent $540,000-$660,000 in additional annual capacity. At current margins, this translates to $108,000-$132,000 in incremental net operating income, creating a payback period of approximately 24 months on the total loan amount.

DSCR of 3.77x is well above the typical bank threshold of 1.25x. Even under a stress scenario with 30% revenue decline, DSCR would remain at 1.85x. The strong ratio reflects Pacific Tech's high margins, low fixed costs, and conservative capital structure. Owner compensation of $180,000/year is included in operating expenses; DSCR is calculated after owner pay.

The 60.7% LTV ratio provides significant equity cushion for the lender. Accounts receivable are diversified across 35+ active clients with no single client exceeding 12% of revenue, reducing concentration risk. Technology equipment values are based on current fair market value, not replacement cost.

No single client represents more than 12% of revenue, and the top 5 clients account for 45% of total revenue. This diversification reduces revenue risk and strengthens the credit profile. Average client tenure is 3.8 years, with 89% annual client retention rate. Managed services contracts typically run 24-36 months with auto-renewal, providing revenue visibility.

David Park, President and CEO, brings 20 years of technology leadership experience. Before founding Pacific Tech in 2018, he spent 12 years at Intel Corporation in Hillsboro, OR, rising from systems engineer to Senior Systems Architect managing a $4M annual infrastructure budget. He holds a BS in Computer Science from Oregon State University (2004), an MBA from Portland State University (2012), and maintains CISSP, AWS Solutions Architect Professional, and Microsoft Azure Expert certifications.

The leadership team includes Sarah Kim, VP of Client Services (8 years at Accenture, specializing in mid-market IT transformation), and Marcus Thompson, Director of Security Practice (former SOC analyst at CrowdStrike, OSCP and CEH certified). The company maintains a technical advisory board that includes a former CIO of PGE and a cybersecurity professor from PSU.

Current team of 15: 8 senior consultants (avg. 10 years experience), 3 junior consultants, 2 project managers, 1 office manager, and 1 business development manager. Average employee tenure is 3.2 years with 92% annual retention rate. The expansion will add 3 senior consultants specializing in cloud architecture, security operations, and AI/ML infrastructure.

Growth projections assume each new consultant reaches 75% utilization within 6 months and 85% by Month 12. Managed services revenue grows 25% annually as the expanded team cross-sells to existing accounts. Expense growth includes 5% annual payroll increases and the new office lease cost ($4,200/month). Conservative scenario (10% growth instead of 19%) still yields DSCR of 2.8x.

Personal net worth of $1.33M provides substantial financial backing for the loan guarantee. Liquid assets of $320,000 alone exceed the loan amount, demonstrating the borrower's ability to support the business through any temporary downturn. The personal financial position is consistent with 8 years of successful business ownership and prior career at Intel.