[1StopFunding]

I've been in the finance business for almost 30 years and I've been in the cash advance industry about 8. In all of my years in business I've never seen a file like the one I received last night!! OMG.....I have a major headache.

Merchant is an upscale restaurant doing about $170K a month in gross revs.
Has 7 MCA's that keep allowing him to renew. Merchant is paying out over $5000/day in MCA's. Hasn't even been in business a year. He owes out approx $484,000 in advances. I need to figure out a way to stop the bleeding with this guy. He already has a small SBA, I may be able to consolidate these advances with a larger SBA, but I haven't completely convinced myself I can get my bank to do it.

Suggestions????

[Jared_Weitz]

I've been in the finance business for almost 30 years and I've been in the cash advance industry about 8. In all of my years in business I've never seen a file like the one I received last night!! OMG.....I have a major headache.

Merchant is an upscale restaurant doing about $170K a month in gross revs.
Has 7 MCA's that keep allowing him to renew. Merchant is paying out over $5000/day in MCA's. Hasn't even been in business a year. He owes out approx $484,000 in advances. I need to figure out a way to stop the bleeding with this guy. He already has a small SBA, I may be able to consolidate these advances with a larger SBA, but I haven't completely convinced myself I can get my bank to do it.

Suggestions????

I declined that deal yesterday, 7 balances is a risky merchant.

[skideeppow]

wow, that is all i can say. Let us know what happens.

[rld]

I spent months trying to help someone out of a similar situation recently. Your restaurant guy os going to end up in the same place my guy ended up unfortunately.. Chapter 11.

My advice to you.. wash your hands of this guy now. It will save you a ton of headaches. This isn't a deal you are going to make money off. If you do somehow get him out of the hole.. he will dig himself a new one.

[GRP Funding]

Your restaurant guy os going to end up in the same place my guy ended up unfortunately.. Chapter 11.

You said it, but we all were thinking it. 65%+ of the merchant's gross going to towards MCA repayment is crazy. The bank statements must be a disaster.