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  1. #1

    Pharmacy looking for 1.5mil. Gross 18.5 mil yearly. Only entertain 11% or lower APR.

    Pharmacy in NY is looking for 1.5 mil for vendor discount on inventory. Merchant grosses 18.5 mil. Stellar financials/credit. Will only entertain 11% or lower APR. Has a SBA loan already. Does not want to put up collateral or a loan against future receivables. I have all docs needed for the deal upon request. Is this rate even possible?

    Call SAL 516-492-4533

  2. #2
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    This is outside my arena. I would have recommended the SBA Capline, or a ABL with someone like Crestmark or Presidential; but you said he does not want to put up collateral or his AR. If he changes his mind and is willing to put up his AR, then 11% range is possible. The most competitive would be the SBA Capline, and then the other 2 are probably similar in pricing. Wish you the best of luck, and I am sure others on this site will be able to give you a better direction than I can.

  3. #3
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    Pharmacy looking for 1.5mil. Gross 18.5 mil yearly. Only entertain 11% or lower APR.

    If the client has an Existing SBA loan, you'll have to take out the existing SBA lender as they are the secured lender and SBA typically won't subordinate. As for not giving up collateral, he'll have yo pretty much sign away all assets again to the new lender and the rate will only be realistic under a traditional finance model or maybe ABL.

    If willing to consider factoring, happy to help. Good luck!

  4. #4
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    Pharmacy looking for 1.5mil. Gross 18.5 mil yearly. Only entertain 11% or lower APR.

    Is the SBA loan direct or a guaranteed bank loan? That could make a difference in subordination or an agreement to shate collateral. There are receivable programs in the General rate area your client is looking for but inventory standalone financing is generally in the teens. A lot will depend on the company's historic cash flow as defined by accountants, not gross sales.
    This sounds like an arena you are not familiar with. I think you should choose to work with someone who will take the time to teach it to you so you may excell at these type of deals in the future.
    I've been teaching finance for over 40 years.
    Bob Shaw
    rshaw@advancecredit.com
    734-929-800

  5. #5
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    Sal,

    It seems as if we are local to each other here in the NY Metro Area. I will reach out to you tomorrow to discuss specifics..

    Richard 516 510 3855

    www.businesscapitalconsultants.com

  6. #6
    Senior Member Reputation points: 16709
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    7-8% non bank are available VIA Line of Credit, if he will consider using receivables.

    Quote Originally Posted by sdellitalia View Post
    Pharmacy in NY is looking for 1.5 mil for vendor discount on inventory. Merchant grosses 18.5 mil. Stellar financials/credit. Will only entertain 11% or lower APR. Has a SBA loan already. Does not want to put up collateral or a loan against future receivables. I have all docs needed for the deal upon request. Is this rate even possible?

    Call SAL 516-492-4533

  7. #7
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    Sal- did you ever catch up to the client to find out exactly what they are looking for?

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