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Absolutely, ultimately getting on a better financial track is the optimal solution. Bandaiding is not a long term path to stability.

What steps can the business owner take to increase cash flow - Increase sales, cut expenses, eliminate excess inventory ? This may not be items you want to get involved with , but, many times the owner has to look inward - they cannot borrow themselves out of trouble - how did they arrive at this spot today?

This should NOT be a MCA Deal - you want to saddle the new owner with a super high cost of capital? What is the financials of the employee wanting to purchase the business. You don't mention what amount of funding they are seeking, how much skin in the game does the employee have? Many questions, but, you should be going down the path of SBA or Term Loan, NOT MCA $$$

Sure it does as I'm sure you and everyone here sees it on a regular basis. Business is not functioning optimally, over time client fills in gaps with borrowing, eventually they hit a cash flow crunch and it becomes a time issue because they need to pay rent or make payroll or any other number of things and they go looking for more funds. The long term answer is to address whatever issues they have that put them there in the first place. The short term problem still exists today. I used to say that I wouldn't do that type of financing at all and did my best to try slow down and take a more affordable route, or see what the underlying issue was. What that resulted in was clients disappearing for a couple of months, resurfacing with their docs, and saying by the way I had to take out this loan/advance in the meantime. The result was the same except I gave away business. At least if I work with clients on these types of deals I can explain the funding to the client so they understand everything and can make their own decision, as opposed to the next guy or funder rep who glosses over the negative and accentuates the positive to get it closed. We can ask questions like does this solve a problem or make it bigger? If you do this, what's your exit strategy? Believe me, I would happily choose to get paid less and have a better deal to present to a client. Unfortunately here I made that effort without success.

If they have decent credit card processing sales volume we could consider.

I emailed you

We are open all week.

I have done this in the past. The old owner needs to qualify for the mca and add the buyer to the business and will be on the contract with the old owner. The old owner needs to stay on the business until we are paid back fully then he can come off the business. If that could work here feel free to reach out to me. Scott Platto scott@tmrnow.com tmrnow.com 212-220-9872

The way Steve depicted is the best way to do it. However, using an mca product, what I have seen in the past is have the current owner stay on, and with each round of funding, they give a percentage of ownership to the new owner and/or have some other sort of document (such as a buy-out agreement) depicting how much is left. The problem is that the mca wont get this done in one shot. Typically the sale price is much more than a few rounds of funding so it takes a long time for the current owner to walk away fully paid.

I know who you're talking about I have info and know where they are.

I did something like this years ago. The previous owner had to cosign on the MCA, the purchase agreement had to be signed Because the business had been opened for many years, was able to facilitate

Last thing they need is more MCA debt if they have cash flow issues. Need to fix their financials. And why the short timelines? Reach out as this doesn't make sense.

Arena Funding Source is open all week! info@arenafundingsource.com (786) 815-6763

Flagler is open all week! Flagler Advance, LLC Info@flagleradvance.com Phone: 844-565-8027

You can do business purchase financing through the SBA 7A at 90%. Can also do a seller carryback to get to 95%. This is not a MCA type of deal. Have to look at it and figure out a structure....maybe some kind of seller full or partial financing can be involved. Reach out.

Agreed (to both of you). There's a drag on cash flow from other debt and client's timeline is short. For Bolt I think they're up to a 700 minimum now, you are correct. Other UCCs are from a long standing bank loan and a small scored term loan with good terms. I would prefer to find something more affordable or at least with more reasonable repayment terms.

I second Dave's comment. What are the UCC's on - with no MCA history. What is the issue?....can't recommend a loan product out further information. I think Bolt would need a higher Fico.

IMO, Why would any sane business owner agree to paying back 54 cents on the $$ for funds? A quick answer if the financials can be cleaned up would be to look at a Bolt Express

I havent received a message from Bryan yet.

infusion is open uw@infusioncapital.org

The LCF Group is open and funding all week!! Please reach out directly if you have any questions. We look forward to helping!! Jason Redding Director of Sales The LCF Group 631-824-1617 888-499-2939 ext. 127 jredding@thelcfgroup.com

Im sure Whats App is nice and loaded with a bunch of full pack sellers :D

Hi Cris- I added you to my Whats App group chat as I think it will add value. I have a solid group of over 700 Fundes & Brokers. You can post your offers.