[1Loanguy]

Retail/Distribution company in CA took on 5 MCA loans totaling 1.5MM due to cash flow issue with a bad business deal, bridge funding in the toughest way.

They already have factoring which has also tied up real estate so no options with those two routes.

Trying to see if any large MCA lenders would consider refinancing a few of the MCA's into one with a 10-12 month term. Super G has already seen this a few times and passed.

Only thing uncollateralized is 2.5MM in inventory. Merchant has a good client list w/PO's but having kicked the can down the road 4-5 months ago they are now well into the cash burn period of this.

[abfunders]

I have an inventory lender who can do this.
Something like 75% of the Net Orderly Liquidation, minimum loan size is $500,000.
It will need a big appraisal and title work, which will take some up-front costs.

[rdgllc]

Retail/Distribution company in CA took on 5 MCA loans totaling 1.5MM due to cash flow issue with a bad business deal, bridge funding in the toughest way.

They already have factoring which has also tied up real estate so no options with those two routes.

Trying to see if any large MCA lenders would consider refinancing a few of the MCA's into one with a 10-12 month term. Super G has already seen this a few times and passed.

Only thing uncollateralized is 2.5MM in inventory. Merchant has a good client list w/PO's but having kicked the can down the road 4-5 months ago they are now well into the cash burn period of this.

Kevin Henry (Seacoast) offers asset-based lines of credit and can use inventory. Not sure if the rest of the details of the deal fit his criteria but I would start there.

[Kevin Henry-Seacoast]

Kevin Henry (Seacoast) offers asset-based lines of credit and can use inventory. Not sure if the rest of the details of the deal fit his criteria but I would start there.

Thanks for the mention! I think I saw this one earlier this week

[RichardGerard]

Retail/Distribution company in CA took on 5 MCA loans totaling 1.5MM due to cash flow issue with a bad business deal, bridge funding in the toughest way.

They already have factoring which has also tied up real estate so no options with those two routes.

Trying to see if any large MCA lenders would consider refinancing a few of the MCA's into one with a 10-12 month term. Super G has already seen this a few times and passed.

Only thing uncollateralized is 2.5MM in inventory. Merchant has a good client list w/PO's but having kicked the can down the road 4-5 months ago they are now well into the cash burn period of this.

Is the group profitable- or would it be by replacing the debt service on the MCA's?

In addition to the Inventory is there M and E on the balance sheet? Personal Real Estate/Assets of the Guarantors?

If a group like Kevin's comes in with a factoring relationship, there are still ways to cram down the MCA's by terming out the balances (say 7-10 years) if there are enough assets and earnings gained by replacing the expensive debt (why would existing AR lender have a Real Estate attachment with good debtors?).

The guys at Super G are very good at what they do- but are very expensive from an APR perspective. Additionally they like to attach to personal assets, and want to see earnings- even though they are charging a factor rate.

I would be happy to discuss next week if you would like additional perspective.

Best,

RG 516-510-3855 Direct

rg@businesscapitalconsultants.com