[skideeppow]

So I am about to close a tech company with $1.6mil in financing. It is an SBA deal and was not easy to get done. It took about 4 months to finally get a Term Sheet, and will close in about 6 weeks.

Anyway, I guess i could have tried to get this done with Smartbiz, but i truly dont think i would have had the ability to get it closed.

I used someone else, and they are paying me 25% of the commission up to $1mill. The next $600k is subject to lower commission rate.

Ill end over netting around $5600.

It s a nice payday but certainly not the 2% i would have gotten had i done it myself. But then again, i dont think i could have closed it myself.

Thoughts?

[abfunders]

Did you want to do it yourself? Do you have the time to put into that, or where you working other deals simultaneously?

[skideeppow]

Did you want to do it yourself? Do you have the time to put into that, or where you working other deals simultaneously?

it was not the time, of course i am working on tons of other stuff.

He has an existing SBA, with A/R tied to that, a couple advances and some other stuff. Plus, there were other people involved in the business. There were a lot of moving parts and i just dont think I could have done it on my own. I have been in the MCA industry for 13 years now, and have done about a dozen $900k + deals before. This one was the most difficult i had seen.

I am just questioning if i left $15k-20k on the table.

[sigmundpannu]

SmartBiz is capped at $350k. GoSBA does over $350 where SmartBiz leaves off and pays almost 2bps.

[WestCoastFunding]

25-50% (depending upon amount of work put in) is fair.

[Nunya]

SmartBiz is capped at $350k. GoSBA does over $350 where SmartBiz leaves off and pays almost 2bps.

surely you mean 200bps

[skideeppow]

25-50% (depending upon amount of work put in) is fair.

ok, that is what i needed to hear.

Thanks

[skideeppow]

SmartBiz is capped at $350k. GoSBA does over $350 where SmartBiz leaves off and pays almost 2bps.

great commision on that one, $320?

[DiamondBL]

Maybe now you know where to go and how to get it done?
That is worth good $

[RichardGerard]

So I am about to close a tech company with $1.6mil in financing. It is an SBA deal and was not easy to get done. It took about 4 months to finally get a Term Sheet, and will close in about 6 weeks.

Anyway, I guess i could have tried to get this done with Smartbiz, but i truly dont think i would have had the ability to get it closed.

I used someone else, and they are paying me 25% of the commission up to $1mill. The next $600k is subject to lower commission rate.

Ill end over netting around $5600.

It s a nice payday but certainly not the 2% i would have gotten had i done it myself. But then again, i dont think i could have closed it myself.

Thoughts?

4 Months to get a TERM SHEET!!!!!!! YIKES

SBA Loan Term sheets are issued through our office (and our partner bank) within 72 hours of receiving a completed file. It doesn't take 4 months to determine assets, credit, and DSCR- based on a new credit facility. The term sheet is just a preliminary document submitted prior to due diligence.

I can see the odd occasion where a COMMITMENT letter might take 4 months to secure- based on appraising assets, title reports, transient Machinery and Equipment etc., though that would likely come with a very messy file, and from a bank that is not a PLP.

If it was a 1.6M file your commission through our office would have been $21,000 which reflects the maximum amount taken on SBA form 159 (30k) plus standard .75 bps on the note. If there was a separate agreed fee agreement/ACH authorization that number would be higher.

Feel free to touch base and discuss in future..


Richard 516 510 3855

rg@businesscapitalconsultants.com

[skideeppow]

4 Months to get a TERM SHEET!!!!!!! YIKES

SBA Loan Term sheets are issued through our office (and our partner bank) within 72 hours of receiving a completed file. It doesn't take 4 months to determine assets, credit, and DSCR- based on a new credit facility. The term sheet is just a preliminary document submitted prior to due diligence.

I can see the odd occasion where a COMMITMENT letter might take 4 months to secure- based on appraising assets, title reports, transient Machinery and Equipment etc., though that would likely come with a very messy file, and from a bank that is not a PLP.

If it was a 1.6M file your commission through our office would have been $21,000 which reflects the maximum amount taken on SBA form 159 (30k) plus standard .75 bps on the note. If there was a separate agreed fee agreement/ACH authorization that number would be higher.

Feel free to touch base and discuss in future..


Richard 516 510 3855

rg@businesscapitalconsultants.com

I should be clear, we needed some docs such as ytd financials and tax returns which took him that time to get done

[RichardGerard]

I should be clear, we needed some docs such as ytd financials and tax returns which took him that time to get done

Understood. If the client is not organized with Financials full underwriting cannot start. In future on any of these types of deals feel free to reach out. We are transparent with what the file will pay- the only variable will be the amount funded.

Also- knowing whether there is a deal (or there isn't) saves considerable time and effort. Waiting all that time for roughly 1/4 the commission is challenging