Results 1 to 15 of 15
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03-05-2019, 10:28 PM #1
- Join Date
- Mar 2019
- Posts
- 97
reverse consolidation loans
Does anyone have any good reading material, perhaps a "1 pager" or PDF on A reverse consolidation loan?
I would like to educate both myself and prospective borrowers and I am looking for something (other than google)
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03-05-2019, 10:46 PM #2
- Join Date
- Jul 2015
- Posts
- 1,202
If you want to stack one, call Cresthill (broker) and ask for Marcus. They will promise to look at any schlock deal you throw their way and then willy-nilly post your request on these boards.
As an alternative, you might use the search function above and get some insight. Not many options available unless you can thread the needle though.
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03-06-2019, 09:43 AM #3
speak to the company you plan on doing them with. I use FundRite, when I first sae these programs they helped understand how to pitch it. Dont know who you do yours with but someone at the company you plan on doing them should be able to help you. If not let me know I can put you in touch with someone at FundRite
John Celifarco
Managing Partner
Horizon Funding Group
3423 Ave S
Brooklyn, NY 11234
T: (347) 773-3990 | F: (718) 795-1990
Linkedin: Profile
Email: john@horizonfundinggroup.com
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03-06-2019, 09:43 AM #4
- Join Date
- Apr 2015
- Posts
- 300
do yourself a favor and dont educate anyone on this product -
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03-06-2019, 09:46 AM #5John Celifarco
Managing Partner
Horizon Funding Group
3423 Ave S
Brooklyn, NY 11234
T: (347) 773-3990 | F: (718) 795-1990
Linkedin: Profile
Email: john@horizonfundinggroup.com
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03-06-2019, 11:00 AM #6
- Join Date
- Jun 2015
- Posts
- 3,323
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03-06-2019, 11:51 AM #7
- Join Date
- Jan 2014
- Posts
- 1,375
main thing for you to know is 1) technically you are not saving them any money what so ever with a reverse. You are putting them more in debt. BUT... 2) with a reverse you are opening up cash flow for them since you are extending the term of the actual debt which if used correctly could definitely benefit a merchant and depending on how much advances they actually have you could possibly be opening up thousands of dollars for them a week which will benefit them. I have closed quite a few reverses so it does help but its not a solution..more of a band aid to stop the bleeding.
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03-06-2019, 12:28 PM #8
- Join Date
- Jun 2013
- Posts
- 293
Reverses don't work because you're trying to put a band aid on a bullet wound. Either they have a real way to fully consolidate all advances at once, and have a long term capital plan in the works to pay it off early, or they'll just take more band aids. Then the band aid box runs out....now what?!
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03-06-2019, 12:33 PM #9
I think there are situations where this makes sense and situations where it doesn't. I have also done a bunch of these and when the merchant only has a short time left on existing advances and they took the money for specific purposes that helped the business, then you can do the reverse without going out that long then the freed up cash flow can make a huge difference for a merchant when running their business day to day. If the merchant is in a situation where they are taking advances to stay alive and are just looking for the next advance to get through another month then these programs dont make sense
John Celifarco
Managing Partner
Horizon Funding Group
3423 Ave S
Brooklyn, NY 11234
T: (347) 773-3990 | F: (718) 795-1990
Linkedin: Profile
Email: john@horizonfundinggroup.com
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03-06-2019, 12:48 PM #10
- Join Date
- Feb 2018
- Posts
- 1,349
most merchants who take on several mca's and than come back to save them from the pain, didn't borrow the money for growth. it was all for survival. there was an article that was published that stated a ton of merchants have had to file BK because of taking on too many MCA's. I believe Florida was the largest state next to NY where all of these issues were happening.
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03-06-2019, 01:10 PM #11
- Join Date
- May 2018
- Posts
- 70
In reality, there is nothing reverse about them, nor are they consolidating anything. It's just clever branding for what is ultimately just a stack position with weekly disbursements of the purchase price, but a specified percentage and remittance that is based on the entire advance having been paid in a lump sum (not to mention a COJ for the full purchased amount, regardless of how much is actually paid to the merchant).
Nothing is being consolidated. No "debt" terms are being extended. The merchant is taking another advance and is responsible for another daily payment, that's it.
For a funder, it's quite possibly the most beautifully structured product in existence from the standpoint of cash-on-cash return. For a merchant, it can certainly make sense, as long as they can benefit from the net cash flow received each week and that outweighs the overall cost of the transaction. But it's a very risky deal for the merchant depending on which funder they work with.
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03-06-2019, 01:20 PM #12
- Join Date
- Oct 2016
- Posts
- 4,318
My favorite type of convo that I get daily:
“I know exactly what I want. I have 5 advances totaling $175k and I want a 5 year term loan with monthly payments. Single digit rates.”
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03-06-2019, 01:41 PM #13
- Join Date
- Aug 2017
- Location
- New York City
- Posts
- 199
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03-06-2019, 02:06 PM #14
- Join Date
- Oct 2016
- Posts
- 4,318
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03-06-2019, 10:01 PM #15
- Join Date
- Jun 2015
- Posts
- 3,323
That used to be my favorite. I got a better one this week . He told me I have 4 loans and want a fifth .I will not pay a penny more than 1.38 with a min of 5 months. Fees can not be more than 2% and than he named lenders not to go to and gave me a list of 9 funders that gave him an approval but weren't willing to do what he wants. 4 of them I never even heard of lol
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