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  1. #1
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    MCA on a future business purchase for $1.3MM

    I'm trying to see if there's any truth to this.

    Spoke to a prospect today who has an offer from a MCA company for $1.3MM over 2 years. Here's the kicker: he doesn't own the firm. In fact he's about to buy it and they're advancing him the funds on the day he closes.

    I never heard of these types of deals. Is it real? Can any lender out there compete on this??

  2. #2
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    Quote Originally Posted by aak723 View Post
    I'm trying to see if there's any truth to this.

    Spoke to a prospect today who has an offer from a MCA company for $1.3MM over 2 years. Here's the kicker: he doesn't own the firm. In fact he's about to buy it and they're advancing him the funds on the day he closes.

    I never heard of these types of deals. Is it real? Can any lender out there compete on this??
    Not that I'm aware of - MCA for 1.3MM for 24 months? Just curious, what type of business?
    Dave Lambert, Business Development
    dave@fcbankcard.com
    Merchant Services Consultant
    High Risk Merchant Payment Solutions
    SBA 7(a) Loans & Short-Term Funding
    T/VM: 727-291-7890
    Office: 727-233-1111
    Skype: fc-financial

  3. #3
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    Quote Originally Posted by Yankeeman07 View Post
    Not that I'm aware of - MCA for 1.3MM for 24 months? Just curious, what type of business?
    Trucking! I couldn't believe it myself.

  4. #4
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    That would be a first I have ever seen, if there is ANY truth to this merchant's story (we all know they lie) I would LOVE to sign a ISO agreement with that company immediately! Please keep us posted, here at Metromedia we have a in office term we use on merchants like that, we call them unicorn chasers here and sometimes they swear they catch one. The morale of the story I tell my sales crew is just because you strap a broom stick on the head of a donkey does not qualify them to be a unicorn.

    But just on the off chance there is some company giving millions to trucking companies for buy out acquisitions in the format of a merchant cash advance, we would defiantly keep that firm very busy!

  5. #5
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    Maybe new for MCA, but these deals are done all the time in different forms. I am working on one right now. A group of investors are buying the assets of a manufacturing business. The AR, AP, and Liabilities are staying with the owners. They set up a NEWCO to acquire the other assets and need a working capital facility in place the day they take over operations.

    We have financed buy outs of several companies in this manner and some we financed the AR and Inventory to round out the financing and provide a facility going forward.

    KH
    Hedley Lamarr......That's Hedley

  6. #6
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    Quote Originally Posted by kevinhenry0527 View Post
    Maybe new for MCA, but these deals are done all the time in different forms. I am working on one right now. A group of investors are buying the assets of a manufacturing business. The AR, AP, and Liabilities are staying with the owners. They set up a NEWCO to acquire the other assets and need a working capital facility in place the day they take over operations.

    We have financed buy outs of several companies in this manner and some we financed the AR and Inventory to round out the financing and provide a facility going forward.

    KH
    Kevin: I get *ton* of M&A loan traffic. I am typically taking them through the SBA and AR lending routes myself but my AR lending facilities are getting exhausted.

    Can you email me some more info on this process? Will you work with third parties?

  7. #7
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    Quote Originally Posted by aak723 View Post
    Kevin: I get *ton* of M&A loan traffic. I am typically taking them through the SBA and AR lending routes myself but my AR lending facilities are getting exhausted.

    Can you email me some more info on this process? Will you work with third parties?
    AAK723: My e-mail: Kevin.Henry@SeacoastBF.com Yes-We pay referral fees.....
    Hedley Lamarr......That's Hedley

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