[Michael Thomas]

Hello Gentlemen,


My client is a trucking company that is currently doing 75-80k a month gross, and wants to expand. Has a Solid Major contract to guarantee work.

Looking for MCA style with 1.4-1.5x factor, 5 - 6 month payback..

Daily Debits are fine, Looking for 825k

Has property to add as collateral if needed preferably not though.

Thanks gentlemen for all your assistance.

[WestCoastFunding]

Doing $80K a month looking for $800K at 1.4-1.5 over 5-6 months?

[Michael Thomas]

correct WCF, as close as we can get to that...

[fundingtoday]

What does the merchant's ADBs look like?

[mikem]

What does the merchant's ADBs look like?

What do the adbs matter? Your gonna take 200%+ specified %? Thats a default.

[abfunders]

If he's factoring, you can get PO financing. Maybe for the "contract" that might be enough.... for trucking, that sounds a bit outrageous, though. He needs an investor, not a loan.

[sigmundpannu]

Do you realistically think he can support a daily payment of $9,500? That’s $200k a month ��. He may want to take the $ and run.

[RichardGerard]

Micah makes a good point by mentioning in the company had an AR relationship perhaps they could get assistance on financing the contract- that is not PO Finance however.

Unless this company has hard assets exceeding the amount of the ask-there isn't any reason why someone would do this. Financing futures is not a debt play- it is an equity play.

[Kevin Henry-Seacoast]

Hello Gentlemen,


My client is a trucking company that is currently doing 75-80k a month gross, and wants to expand. Has a Solid Major contract to guarantee work.

Looking for MCA style with 1.4-1.5x factor, 5 - 6 month payback..

Daily Debits are fine, Looking for 825k

Has property to add as collateral if needed preferably not though.

Thanks gentlemen for all your assistance.

Michael,

This is too small for us, but you should consider finding a good transportation factoring Company. If they were billing in excess of $100K/month we might have an interest. Also-you will be hard pressed to find purchase order financing for a service business as it really does not exist. PO financing is typically used for manufacturing businesses. The finance company will only finance the cost of the goods in the PO and will want to factor out of the deal once goods are shipped to the customer and invoiced. Finding contract finance for a service business will be difficult since the company is small and there are not many folks that will finance contracts for a trucking company unless they are doing government work. Your best bet is finding a good factor with an aggressive advance rate that might also be able to finance some of the trucks/trailers.

[WestCoastFunding]

He isn't getting $800K. A more realistic funding amount would be $80K.

[mcaguru]

Trucking-transportation-construction think mantis {end}

[Jplummer]

$80,000 is 4 maybe 5 trucks. If he is wanting to grow his company why isn't he looking to acquire more equipment. If he has credit score over 600, good cash flow and maintains $10,000 ending balances we can help him. Having said that he needs to have reasonable expectations. He is not going to be able to get $800,000 in trucks in one shot.

[WestCoastFunding]

$80,000 is 4 maybe 5 trucks. If he is wanting to grow his company why isn't he looking to acquire more equipment. If he has credit score over 600, good cash flow and maintains $10,000 ending balances we can help him. Having said that he needs to have reasonable expectations. He is not going to be able to get $800,000 in trucks in one shot.

The fact he’s specifically looking for a MCA at 1.4-1.5 over 5-6 months tells the story.

[abfunders]

How many businesses have we all seen that have killed or almost killed themselves by trying to grow too fast? They borrow from banks, followed by MCAs, and, inevitably, the "borrow" from the IRS.

[Jplummer]

You are probably right.

[Cfairbank]

What’s the size, length and exclusivity of contract? We will fund startups with an existing PO or exclusive term contract —> trucking depends on those elements and security of contract —> on federal government side, we will do that all day

[mcaguru]

While on "Trucking" subject...we also fund MICRO-FILE TRUCKING/TRANSPORTATION! WITH PSF'S AND POOR CREDIT PROFILES! But are known to fund 180K trucking-firm with same ease as a 20K funding!

[dpFund]

Michael,

You noted that the client has property as collateral although it is not his first choice to use it.

If the client is open to it (and the property is solid), the rates are a LOT less expensive than unsecured loans. Typically in the single digit APR. 30 year term, with the rate fixed for three years.

Feel free to reach out if you would like to discuss.

Best,

Dan Page
Boulder Equity Partners
Direct:303-938-8280
dan@BoulderEquityPartners.com

[Sachip24]

doing 80k and WANTS a daily payment of 10k?!?!? did I miss something here? even with property he cant support that type of payment. That default waiting to happen. no one in their right mind would put out that much exposure. His only chances are if he has literally 1 million worth of A/R that you can factor or get ABL which it does not sound like it. Or if he has time which is the only reasonable thing you can do here is if you get him an SBA loan. Thats really the only way I see him getting 825k over long term. He will have to use collateral (real estate) now if he barks at that idea then you know he's up to something.