Quote Originally Posted by jeffcapital View Post
Have a client with 300K in 3 advances .... Deposits is 450K per month
Mid 600 ficos
Restaurant

Has Real Estate 2 properties Owes mtg 450K and has 500K equity total between both of them ( But also have SBA lien on both properties )

net zero consolidation??? may be willing to take more capital with consolidation

Anyone???
Thoughts ????

So client owns a restaurant that has an SBA loan- THEN has taken 3 advances on top of it. Since restaurants have no real assets (the equipment is cheap and depreciates swiftly), the SBA locked up all of his personal assets with a 504 or 7a.

Since he likely is paying more than 50k per month to advances, chances are merchant is not profitable. The issue is not total equity, it's the LTV on each.. Likely note much to attach to.

Taking on more debt seems like the last thing this merchant should be doing