Results 1 to 18 of 18
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12-28-2018, 09:20 AM #1
- Join Date
- Apr 2015
- Posts
- 159
Applicant Under 50%, $1M per month revenue
Clean cannabis deal here ($800k/mo. august and sept., $1M nov. / dec., healthy balances) but one technical issue:
Company is venture backed so applicant only owns 25% but is fully authorized to secure a loan.
Which lenders a) fund cannabis AND b) will put out an offer to a minority owner?
Collectively he and his brother own 48% and 2 other founders put them over the majority.
Thank you in advance
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12-28-2018, 09:44 AM #2
- Join Date
- Mar 2015
- Location
- Boynton Beach
- Posts
- 3,501
Hi Helping Hand,
We can't touch the stuff as we are a division of a bank, but I will offer some friendly advice. Get a copy of their operating agreement with their equity sponsor. Regardless if they have majority shareholder control, they may not be able to get any funding without the sponsor's approval.
Always back-up what someone said with a document that proves it!
Best,
KHKevin Henry
VP-Business Development
Seacoast Business Funding, a division of Seacoast Bank
561-850-9346
Kevin.Henry@SeacoastBF.com
1880 N Congress Ave., Suite 404
Boynton Beach, FL 33426
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12-28-2018, 09:45 AM #3
Try Steven From Davinci - 210-290-4102
Jerry Starr
Insource Funding
433 Plaza Real,
Boca Raton, Fl 33432
P: 800-805-3391 Fx: 561-270-6895
insourcefunding.net
WHAT WOULD YOU DO " IF " YOU HAD THE CAPITAL
◆ 50% LTV - No Fico Required
◆ 90% CLTV on Purchases
◆ Investment Residential / Commercial Properties
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12-28-2018, 09:58 AM #4
- Join Date
- Oct 2016
- Posts
- 4,318
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12-28-2018, 10:05 AM #5
- Join Date
- Mar 2015
- Location
- Boynton Beach
- Posts
- 3,501
Kevin Henry
VP-Business Development
Seacoast Business Funding, a division of Seacoast Bank
561-850-9346
Kevin.Henry@SeacoastBF.com
1880 N Congress Ave., Suite 404
Boynton Beach, FL 33426
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12-28-2018, 10:40 AM #6
- Join Date
- Oct 2018
- Posts
- 99
If they have a notarized letter saying that they have power of attorney then we can do that
Adam Ward
911 Ave U
Brooklyn NY 11235
adam@Funding-Zone
347-269-1598
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12-28-2018, 10:41 AM #7
- Join Date
- Mar 2015
- Location
- Boynton Beach
- Posts
- 3,501
Kevin Henry
VP-Business Development
Seacoast Business Funding, a division of Seacoast Bank
561-850-9346
Kevin.Henry@SeacoastBF.com
1880 N Congress Ave., Suite 404
Boynton Beach, FL 33426
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12-28-2018, 10:53 AM #8
- Join Date
- Aug 2014
- Posts
- 620
Hanna, If there is notarized documentation that the 2 brothers are authorized by the board to make financial decisions we can give a VERY aggressive offer on this deal. I just funded a cannabis deal earlier this month for 750k with a similar ownership situation. Feel free to reach out if I can be of any help here.
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12-28-2018, 10:54 AM #9
- Join Date
- Mar 2015
- Location
- Boynton Beach
- Posts
- 3,501
No you can't....
Kevin Henry
VP-Business Development
Seacoast Business Funding, a division of Seacoast Bank
561-850-9346
Kevin.Henry@SeacoastBF.com
1880 N Congress Ave., Suite 404
Boynton Beach, FL 33426
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12-28-2018, 10:55 AM #10
- Join Date
- Aug 2014
- Posts
- 620
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12-28-2018, 10:58 AM #11
- Join Date
- Mar 2015
- Location
- Boynton Beach
- Posts
- 3,501
Guys-If a Company is sponsor backed by a family office, VC, or private equity fund you will need to review the operating agreement to determine if management has authorization to make financing decisions without shareholder approval. The operating agreement trumps any PA that is notarized. If someone granted a PA they would have had to change the operating agreement.
KHKevin Henry
VP-Business Development
Seacoast Business Funding, a division of Seacoast Bank
561-850-9346
Kevin.Henry@SeacoastBF.com
1880 N Congress Ave., Suite 404
Boynton Beach, FL 33426
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12-28-2018, 11:00 AM #12
- Join Date
- Mar 2015
- Location
- Boynton Beach
- Posts
- 3,501
With all due respect Anthony....I don't think you wanna place bets here. What you should be doing is going back and asking for the operating agreement for the company you just funded to make sure it was changed to reflect the PA. Otherwise....your PA might be worthless......
Kevin Henry
VP-Business Development
Seacoast Business Funding, a division of Seacoast Bank
561-850-9346
Kevin.Henry@SeacoastBF.com
1880 N Congress Ave., Suite 404
Boynton Beach, FL 33426
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12-28-2018, 11:04 AM #13
- Join Date
- Aug 2014
- Posts
- 620
It was a 3rd time renewal, we have the operating agreement as well. I didn't want to stip him to death on a daily funder post. Hanna and I have worked together for some time now, if he decided to get the file over to me then him and I would have figured out exactly what was needed to get this funded.
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12-28-2018, 11:24 AM #14
- Join Date
- Apr 2015
- Posts
- 159
Kevin, I understand all of your points but i'm just looking for a funder that will put out an offer to a minority owner. About 18 months ago or so all the funders in the industry started requiring majority owner to apply. That is ridiculous because their offers are contingent anyway. There is no legal implication to putting out a conditional offer to a minority owner, whether they're authorized or not. That may or may not be free to seek offers, but what's it to a lender if they're conditioning the offer anyway? The offer can be further conditioned on a statement by the applicant saying they are hereby authorized to do apply, absolving risk to the funder.
I would impress it upon legal counsel for all these MCA companies to seriously look into this. It will help brokers out, reduce the burden on clients, and increase deal flow for funders.
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12-28-2018, 11:26 AM #15
- Join Date
- Mar 2015
- Location
- Boynton Beach
- Posts
- 3,501
You can do what you want as it's your money. I ask for necessary documents every time money goes through the door .....I don't care how long they have been a client.
A finance Company in the South East was just taken for $1.7Mil by a client who has been with them for over 5 years. The documents were not buttoned-up.Kevin Henry
VP-Business Development
Seacoast Business Funding, a division of Seacoast Bank
561-850-9346
Kevin.Henry@SeacoastBF.com
1880 N Congress Ave., Suite 404
Boynton Beach, FL 33426
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12-28-2018, 11:35 AM #16
- Join Date
- Mar 2015
- Location
- Boynton Beach
- Posts
- 3,501
Helpinghand..... Having the right documents in place to fund a transaction closes deal. Not having the right documents to collect term sheets wastes time. Getting the right information upfront every time not only ensures certainty to close, but also speeds up the process.
Kevin Henry
VP-Business Development
Seacoast Business Funding, a division of Seacoast Bank
561-850-9346
Kevin.Henry@SeacoastBF.com
1880 N Congress Ave., Suite 404
Boynton Beach, FL 33426
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12-28-2018, 06:36 PM #17
- Join Date
- Dec 2018
- Posts
- 66
As long as a k1 or the canibus board document the brothers as majority thats when a funding company should fund.
Yellowstone funds anyone. Thats why they made bloomberg news.
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01-01-2019, 04:30 PM #18
- Join Date
- Oct 2016
- Posts
- 7
He only needs to show atleast 5%. Will need a k-1 or tax returns showing his name and business name.
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