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  1. #1

    Snack food wholesaler looking for term-A paper

    Was approved for SBA loan but landlord would not sign the sub form.Purchased existing 2 years ago. Revenue 200k last owner, 550k 2016 to 850k 2017. 690-700 scores only lower due to inquiries. Looking for term loan of 150k.

  2. #2
    Senior Member Reputation points: 216519
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    Why not A/R financing or a Line of Credit? Much more flexibility, similar rates, and they have space for other types of loans. An SBA will more or less lock them in. What if they need more money in the future?

    Email me, I can give you some better ideas.....

  3. #3
    Senior Member Reputation points: 68233
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    Quote Originally Posted by abfunders View Post
    Why not A/R financing or a Line of Credit? Much more flexibility, similar rates, and they have space for other types of loans. An SBA will more or less lock them in. What if they need more money in the future?

    Email me, I can give you some better ideas.....
    Micah I agree- SBA is not the right product for a company in growth mode- however they can stand side by side with other instruments (with an inter-creditor agreement) - especially if AR Finance takes a UCC only specific to that asset.

    Also- actual out of pocket with a revolver is less than a term note even if the term note has a lower interest rate (not similar).

    As for the Landlord Subordination form: sometimes the landlord and tenant have to negotiate- maybe receive another month out of loan proceeds etc.. Important to understand/explore all options. I have had to personally negotiate on behalf of my client in that situation and let the landlord know that the loan helps the borrower- making them a better tenant.

    Feel free to touch base.. RG 516 510 3855

    www.businescapitalconsultants.com

  4. #4
    50k of A/R, and about 100k inventory at any given time.

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