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  1. #1

    Need A Solution

    Ny manufacturer. 2017 5.4MM Gross. 1 balance 150k- 12 month deal 1.20 with a weekly payback.
    Credit low 600's . Personal BK fully discharged 5 years ago.
    Daily bank balances immaculate.

    Looking for 600-800k , an unsecured bridge for 6-9 months beating the in place lender by price and payment structure.

  2. #2
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    Quote Originally Posted by TMR View Post
    Ny manufacturer. 2017 5.4MM Gross. 1 balance 150k- 12 month deal 1.20 with a weekly payback.
    Credit low 600's . Personal BK fully discharged 5 years ago.
    Daily bank balances immaculate.

    Looking for 600-800k , an unsecured bridge for 6-9 months beating the in place lender by price and payment structure.
    TMR-I have a solution.... Factor his AR. He is billing around $450K a month. I bet he has over 600K outstanding which means he would likely get a $750K to $1Mil facility. If the financials look OK we would consider an inventory and/or M&E consideration. Rates will be way better than what you mentioned. kevin.henry@seacoastbf.com 561-623-1872 is my direct.
    Hedley Lamarr......That's Hedley

  3. #3
    AR lenders can't wrap their heads around their sales cycle.

  4. #4
    Senior Member Reputation points: 5016 @jeannette's Avatar
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    We lend on manufacturing equipment and on AR, call me about the sales cycle, we may be able to understand it...we can work with more complicated structures. jnearing@transfaccapital.com 770-362-2307
    Jeannette Nearing | Business Development Officer| AmeriFactors
    | M (770) 362-2307
    jnearing@amerifactors.com |

    http://www.amerifactors.com
    https://www.linkedin.com/in/jeannettenearing

  5. #5
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    Who gave him a 12 Month 1.20?
    Thats Insane

  6. #6
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    Quote Originally Posted by TMR View Post
    Ny manufacturer. 2017 5.4MM Gross. 1 balance 150k- 12 month deal 1.20 with a weekly payback.
    Credit low 600's . Personal BK fully discharged 5 years ago.
    Daily bank balances immaculate.

    Looking for 600-800k , an unsecured bridge for 6-9 months beating the in place lender by price and payment structure.
    What is their average days outstanding? Do they have customers with N90 terms? If they are very good credit quality customers we don't mind lending on AR with extended terms.
    Hedley Lamarr......That's Hedley

  7. #7
    It's a strange sales cycle. They receive a PO and with it a 50% deposit. The manufacturer takes anywhere between 20-30% of that deposit to build the product in China. The time it takes to build on that PO could be 1 week all the way out to 6 months. Once the order is built he then sends a final invoice to the hotel, this is his majoirity customer base, major hotel chains, which at this point he'll receive the remainder due. He wont send the product to the customer until he receives the outstanding 50% due. It's hard to determine when and but what tangible form the customer becomes the owner of that product . The business owner call his AR " in transit"

  8. #8
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    Quote Originally Posted by TMR View Post
    It's a strange sales cycle. They receive a PO and with it a 50% deposit. The manufacturer takes anywhere between 20-30% of that deposit to build the product in China. The time it takes to build on that PO could be 1 week all the way out to 6 months. Once the order is built he then sends a final invoice to the hotel, this is his majoirity customer base, major hotel chains, which at this point he'll receive the remainder due. He wont send the product to the customer until he receives the outstanding 50% due. It's hard to determine when and but what tangible form the customer becomes the owner of that product . The business owner call his AR " in transit"
    Hi TMR,

    Tough to fund the invoices as the goods are technically COD. The Customer does not take delivery until paid so it's really a cash transaction.
    Hedley Lamarr......That's Hedley

  9. #9
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    PO Financing...??

    Go on Shark Tank, lol.

  10. #10
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    Quote Originally Posted by kevinhenry0527 View Post
    Hi TMR,

    Tough to fund the invoices as the goods are technically COD. The Customer does not take delivery until paid so it's really a cash transaction.

    Hey Kevin don't some of the Trade Finance guys provide some liquidity in these situations- and sometimes even assist with the Logistics?

  11. #11
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    Quote Originally Posted by RichardGerard View Post
    Hey Kevin don't some of the Trade Finance guys provide some liquidity in these situations- and sometimes even assist with the Logistics?
    Maybe ExWorks? Lisa Wozneyis in the Florida office.
    Hedley Lamarr......That's Hedley

  12. #12
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    Quote Originally Posted by ryan $ View Post
    Who gave him a 12 Month 1.20?
    Thats Insane
    ondeck and swift give lower on reg basis. swift has been banging out 1.12 like crazy had several 200k deals in last few weeks didn't even bother with as soon as they told me swift offered 12 months 1.12 im like go with them don't bother looking around for better deal. just come to me in few months for a second

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