[Sachip24]

Do any lenders go this high on a term loan that is not an SBA program? if so please PM and we can go over details

Good credit
6 mill a year revenue
good bank statements
1 mill in balances currently looking to consolidate that
already has SBA loan thats why can not be SBA looking for term loan thank you

[abfunders]

Why not go to a local bank?

[WestCoastFunding]

Why not go to a local bank?

Because the bank will want a SBA enhancement. But a 7(a) won't happen with $1 million in balances (if they're MCAs) and with a current SBA. This would have to be an asset play.

[abfunders]

So we'll ask the question:

What's the credit?
What's the collateral available?

[sbaguy]

I did one similar to this with a SBA loan. You are right that it is a challenge, but it can be done. If you can not find another option, I would suggest contacting their current SBA lender. For one, they are the most likely to approve the loan since they already have the first. The second reason is that even if you had another SBA lender that was willing to do it, the first SBA lender essentially has a first right of refusal. The below quote is pulled directly from the SBA SOP:

"a.Procedure to refinance an SBA-guaranteed loan:
i. Borrower or Lender must provide evidence from the lender holding the existing SBA-guaranteed loan that verifies the lender has declined to approve an increase in loan amount or a second loan and the lender is either unwilling or unable to modify the current payment schedule. Lender must retain this evidence in the loan file".

So they either approve the loan, or give you a letter stating that they are not willing to extend additional credit to the borrower. Once you have that, then you can contact a different SBA lender, and then they can refinance the current SBA loan, and get the additional loan for the borrower. You will hear many people say that you can't refinance SBA debt with SBA debt, but that is simply not true. If you do a google search and download the SOP it clearly states in there that you can, you just have to follow the rules (for example another threshold is a 10% savings in the new payment).

I don't contribute to this thread much because I am not a MCA expert, but when it comes to SBA thats pretty much all that I do. Best of luck!.

[WestCoastFunding]

I did one similar to this with a SBA loan. You are right that it is a challenge, but it can be done. If you can not find another option, I would suggest contacting their current SBA lender. For one, they are the most likely to approve the loan since they already have the first. The second reason is that even if you had another SBA lender that was willing to do it, the first SBA lender essentially has a first right of refusal. The below quote is pulled directly from the SBA SOP:

"a.Procedure to refinance an SBA-guaranteed loan:
i. Borrower or Lender must provide evidence from the lender holding the existing SBA-guaranteed loan that verifies the lender has declined to approve an increase in loan amount or a second loan and the lender is either unwilling or unable to modify the current payment schedule. Lender must retain this evidence in the loan file".

So they either approve the loan, or give you a letter stating that they are not willing to extend additional credit to the borrower. Once you have that, then you can contact a different SBA lender, and then they can refinance the current SBA loan, and get the additional loan for the borrower. You will hear many people say that you can't refinance SBA debt with SBA debt, but that is simply not true. If you do a google search and download the SOP it clearly states in there that you can, you just have to follow the rules (for example another threshold is a 10% savings in the new payment).

I don't contribute to this thread much because I am not a MCA expert, but when it comes to SBA thats pretty much all that I do. Best of luck!.

I hear that. Yes, you can definitely refinance SBA debt with new SBA debt, but need some clarity on the "balances". If any of those balances are MCAs, I don't know how it would get done.

[Sachip24]

Yes balance on SBA is 3.5mill was recently taken out 2 months ago. Went with small bank that did not really know what they were doing to get it done. As per merchant they are looking to build their SBA portfolio so they are not letting him take or refi his current SBA to get more money. His other balances around $1m are in MCA's

[WestCoastFunding]

Yes balance on SBA is 3.5mill was recently taken out 2 months ago. Went with small bank that did not really know what they were doing to get it done. As per merchant they are looking to build their SBA portfolio so they are not letting him take or refi his current SBA to get more money. His other balances around $1m are in MCA's

That makes sense. That $1M in MCAs would be an automatic disqualifier for a 7(a) refinance. This is a tough file.

[abfunders]

Did you try with Southend Capital? I'm pretty sure they're brokers (at least with this product), but they do hardcore advertising that they specialize in this type of thing.

Alternatively, if the guy has some real estate or other collateral (which clients like this normally do), there are other options. Feel free to reach out to me via email to help you with some ideas.

[RichardGerard]

See if the client qualifies for 8a.. That might be the way to get more $ (just finishing up a 7a, 8a and LOC for a Northeast Logistics firm for a total of $8M).

If not- REALLY hard to get 2M after 3.5 was just secured-

[RichardGerard]

Did you try with Southend Capital? I'm pretty sure they're brokers (at least with this product), but they do hardcore advertising that they specialize in this type of thing.

Alternatively, if the guy has some real estate or other collateral (which clients like this normally do), there are other options. Feel free to reach out to me via email to help you with some ideas.

Yes Micah- South End=Brokers.. Agreed- if the assets are there- there might be ways to help

[FTOP]

Do you have full financials? is 15 months an option they would consider?