[AlexSMF]

If there were funders out there that would actually provide a 2,000,000 advance for 12-15 months in the low to mid 1.30's (assuming the cash flow and balances are there to cover the ACH's) then that is what this deal probably qualifies for. In the real world, a scenario like this would not generate that type of offer however. Kevin, were you asking specifically what an MCA company would offer this?

[Kevin Henry-Seacoast]

Hi Alex,

Given the scenario, what would you think would be the best, most cost effective working capital solution for a Company such as this and what would be the cost of capital. A ballpark APR....

Best,

Kevin

[AlexSMF]

Hi Alex,

Given the scenario, what would you think would be the best, most cost effective working capital solution for a Company such as this and what would be the cost of capital. A ballpark APR....

Best,

Kevin

In this scenario, I would broker this to an ABL that would overlook the balance sheet being upside down (especially since the source of it is the shareholders loans). Probably a 12% best cast to 18% worst case. Leverage the receivable with no debt service. Actually, I know this guy, I think his name is Kevin Henry...company had something to do with water. Westcoast funding, eastcoast funding, no wait, seacoast funding, yes that's it. You should call Kevin, he may be able to help in this type of scenario.

[Kevin Henry-Seacoast]

AlexSMF,

The source of the negative equity is losses over the years of start-up. The start-up capital was injected as equity...no debt on the balance sheet. ABL or factoring would make good sense at least for the next twelve months or until the equity on the balance sheet turns positive. The rates might be a touch high depending on who you take it to....