[jjdcnetrex2]

My merchant currently has 5 positions totaling about 900K. He has a factor in place but is willing to switch to a new factor if lump sum payment to pay off cash advances is available. Is this possible? He does roughly 1.4-1.7 per month in revenue. HE is paying .15 with current factor but is willing to pay a bit more in order to get from under the cash advances.

[Kevin Henry-Seacoast]

My merchant currently has 5 positions totaling about 900K. He has a factor in place but is willing to switch to a new factor if lump sum payment to pay off cash advances is available. Is this possible? He does roughly 1.4-1.7 per month in revenue. HE is paying .15 with current factor but is willing to pay a bit more in order to get from under the cash advances.

What industry? Kevin.Henry@SeacoastBF.com

[abfunders]

What's the holdback amount on the factor? That's the only extra collateral he can get. They're going to need more than just a new factor to get that thing done.... is there a 1st or 2nd position on real estate? M&E? Inventory? You have got to see a balance sheet and Personal Financial Statement to know for sure.

[Cfairbank]

Another example of an, on the face at least, is a perfect example of how to use our factor advantage product. But instead of stacking factor with cash advance, the customer receives an apr-based term loan

Edit to note: we go to 1mm on exceptions basis

[Mynameisbob]

como say what?

[Jwhavicpeters]

My partner is very interested in this deal. Please give me a call at 574.334.0221 or jw@havicpeters.com

[RichardGerard]

My merchant currently has 5 positions totaling about 900K. He has a factor in place but is willing to switch to a new factor if lump sum payment to pay off cash advances is available. Is this possible? He does roughly 1.4-1.7 per month in revenue. HE is paying .15 with current factor but is willing to pay a bit more in order to get from under the cash advances.

If the client already has a factor in place AND has 5 positions out- a new factor (or Bank ABL) will only get them part of the way to clean things up. At 1.4-1.7 monthly, with an advance rate of say 85% there is very little AR left to leverage. If there is Machinery and Equipment or other marketable assets, and profitability (not likely with 900k in short term EXPENSIVE debt on the balance sheet), someone like Kevin can come in and take out the factor, and likely pay off some of the MCA debt with an airball. The balances might be still be there but the monthly debt service can be diminished.

I'm assuming you mean the client is paying 1.5% for the first 30 days on outstanding balances. Carl's group will stand somewhat behind a factor (with an inter-creditor agreement) on files they like the business and the debtors.

As much as anything else the key is the business. Are they growing? Have they needed the advances for growth or merely to pay AP and expenses? Business type is key as well because of payer risk in some industries. There are people on this thread that can help.

While Kevin and Carl deploy capital feel free to touch base if this file is external of their box.

RG 516 510 3855

rg@businesscapitalconsultants.com