[NickHubbard]

Hey Guys,

Had this deal come across my desk. Borrower has a lot going on, but his monthly revenue is strong. Thought I'd give a last attempt and put it on here before passing on it. He's trying to consolidate a 1st position & net $30K or an aggressive 2nd position even.


Email summary borrower sent me below:

Defaulted with a funder around Oct 2016. Basically reached a settlement of $66,000 which includes attorney fees and everything. I started repayment in December of 2017. I have not missed any payments on that and currently owe $30,000 on the $66,000. I pay $3000/month on that.

We are looking for a loan of $125,000.

We have been in business for 2yrs and some months. Current revenues are $175,000-$200,000/month and growing every month.

2015 Revenue - $550,000
2016 Revenue - $670,000
2017 Revenue - $1.1 million
2018 Estimated $2.1 million


Basically I have a settlement that I owe around $30,000 on which I pay $3,000/month. I also have a merchant advance that I owe $87,400 on. The advance has a daily payment of $450. So I owe around $120,000 with almost $12,000/month of debt service just on these two loans. My current monthly revenues are around $175,000 with steady growth and a new customer starting next week that should increase revenues by $20,000-$40,000/month. I am in the local trucking and delivery business.

Credit scores are around 572 & 578

No Real Estate or Equipment!!

[Hedley Lamarr]

Factor that!

[NickHubbard]

Factor that!

Yeah! I asked him about going this route. He says his A/R runs around $90,000 and growing, but is on net 14 with his customer and they pay 100% on time.

[Hedley Lamarr]

Yeah! I asked him about going this route. He says his A/R runs around $90,000 and growing, but is on net 14 with his customer and they pay 100% on time.

Revolving factoring facility free up cash flow even if customers pay in 14 days. They are better off financing the AR at a reasonable rate than taking advances or term debt.

KH

[brokerCompany]

I dont think Seacoast will look at a 90k revolver too small for the big bankers

[Hedley Lamarr]

I dont think Seacoast will look at a 90k revolver too small for the big bankers

Yes we will....especially if they are growing.

[evgfunding]

Hi Nick,

This is right in our wheelhouse and we would love to take a look at it if your client is interested in factoring his receivables. We are also willing to provide a daily rate or a 15-day rate if that works better for their net 14 terms.