[Skytop]

Business does 4MM+ annually, good credit, lots of aging A/R to be leveraged, looking for lowest cost access to 1MM that will at the very least feel like a LOC. Not looking to put any real estate collateral up.

Any ideas here? Appreciate it!

[Kevin Henry-Seacoast]

Business does 4MM+ annually, good credit, lots of aging A/R to be leveraged, looking for lowest cost access to 1MM that will at the very least feel like a LOC. Not looking to put any real estate collateral up.

Any ideas here? Appreciate it!

What industry? Kevin.Henry@SeacoastBF.com

[abfunders]

What's the current debt?

[Skytop]

He Rents out Commercial Equipment he owns and owns real estate.

Per merchant debt is 350k to a bank on an existing LOC

[Kevin Henry-Seacoast]

He Rents out Commercial Equipment he owns and owns real estate.

Per merchant debt is 350k to a bank on an existing LOC

Skytop,

Not a fit for us. We cannot finance receivables of an equipment rental business as most of those invoices are probably billed in advance.

[abfunders]

Unsecured will be impossible.
I can get you a secured line, but he'd obviously have to buy out the bank, who has first position and a blanket UCC. Maybe we can finance his equipment and give him more working capital.

Send me an email Skytop, there's a lot of good business to be done!

[RichardGerard]

Skytop,

My colleagues Kevin and Micah make excellent points. As Kevin mentioned the AR is likely pre billed so the Net Operating Income of the entity, and the Guarantors credit will likely play a large role in finding the right credit facility.

Should you wish to discuss in greater detail, please feel free to do so..

RG 516 510 3855


www.businesscapitalconsultants.com

[abfunders]

Let me clarify on this one: We can help him an unsecured credit facility that won't make a UCC lien for $150,000, but for $1mm, he'll have to re-fi everything. UNBLOCs might be possible to get a few $150,000 bank lines at once, but again, the senior debt is key.

And from my experience recently, convincing a merchant to buy out the bank rates for higher rates and worse terms is very hard!

[CritonCapital]

If he's willing to pledge the property (if he comes around to it), a 30-year amort. mortgage will certainly offer lowest payments. Keep us in mind.

[RichardGerard]

Business does 4MM+ annually, good credit, lots of aging A/R to be leveraged, looking for lowest cost access to 1MM that will at the very least feel like a LOC. Not looking to put any real estate collateral up.

Any ideas here? Appreciate it!

Since the client is unwilling to leverage Real Estate (and we do not know the extent of existing leverage), and there appears to be a pre billing component to the AR- earnings, FICO, and M and E are the only things left to squeeze.

Without understanding those dynamics how to attack this is just speculation.