[mleyble]

Coming from the MCA/Cash Advance world, a request to pay off the referring company sounds EXTREMELY shady. That being said, my company provided the client with a 14-month MCA because we were already in discussions with an SBA lender to do a complete debt consolidation for the client and she was in need of some immediate working capital at the time to pay down some vendor debt she had.

SBA, after providing a commitment letter, killed the deal in underwriting and said paying our balance off was a conflict of interest and if our financing stayed in place, the deal could not cash flow.
*EYE ROLL* I know. We “shot ourselves in our own foot”, right?

BUT… we went into this thinking we had an out for her that would allow her to get her business back on track and allow her the opportunity to start purchasing higher priced drugs again to expand her business.

Details:
-~$300K-$350K in monthly sales
-In business since 2010
-XPN 740 (*credit last ran in Oct)
-2018 P&L had net income of +$148K
-Our balance is ~$191K, only MCA – immediate refi request
-Vendor debt is ~$479K – these are wholesale pharmacy distributor balances that ideally would be re-fi’d.
-2 small bank loan balances of ~$65k – can be included in re-fi.
-Approx. $700K is owed to the prior owner but that is on reasonable terms and does not need to be re-fi’d.

There is a huge opportunity here for the right lender that cares about their clients (and about making money, of course). Thoughts on possible solutions for this client are welcome! TIA!
-Megan

[WestCoastFunding]

damn, this really needed to be done with a SBA.

[sigmundpannu]

Odd you couldn't get this done on an SBA Loan, we constantly refi our MCA's into SBA. Not sure if there is RE collateral or not. You may want to reach out to Stephanie Schwandt - Stone Bank 850-276-0484 for larger than $350k loan amount. With no RE collateral SmartBiz for <$350k assuming it passes cash flow

[abfunders]

You could always offer a steep prepayment discount.
You got them into the mess, you should get them out.

Either way, too bad they weren't involved with a factor that does medical.

[mleyble]

Salt in the wound, man! LOL but also

[mleyble]

We'd be completely willing to offer a prepay discount on this.

[LJH365]

Call me

[RichardGerard]

Hey Megan,

The devil is in the details. There is cash flow- and then there is GLOBAL cash flow. Saying that there is 148k in earnings isn't enough-when we don't know if the owner is rolling in all of their personal expenses into the company, interest, depreciation, and shareholders salary.

We work with approximately 20 different SBA Lenders throughout the Country and they all have different DSCR ratios- and collateral parameters. Cash flow can also be augmented by splitting up the Credit Facility into a loan and a line of credit- WHICH MANY SBA Lenders do not do. This is what we specialize in: knowing where to send deals- so they don't die.

I would be happy to spend a few minutes looking at the files collateral and credit (we do soft pulls), to verify the Global Cash Flow and to determine viability. Sometimes you need to be creative to get a deal done.

RG

Business Capital Consultants
3237 Route 112 Suite 9
Medford, NY 11763
Office- 631-880-7501
Mobile- 516-510-3855

rg@businesscapitalconsultants.com

[Sachip24]

sign up with Aquinas if the business is a Pharmacy. they will do it and give sick offers. As well as they have special programs in place since most likely pharmacy is getting paid by insurance companies. anything in medical industry Aquinas is where you want to go with it.

[RichardGerard]

sign up with Aquinas if the business is a Pharmacy. they will do it and give sick offers. As well as they have special programs in place since most likely pharmacy is getting paid by insurance companies. anything in medical industry Aquinas is where you want to go with it.

Decent rates at Aquinas- we get better from A Paper Advance Groups. This deal however is being brokered by a firm that essentially competes with them

[A1Financial]

A1 Financial USA can cut their payments in half..please call Mark 909-930-9159
Mark@A1FinancialUSA.com
WE SPLIT ALL COMMISSIONS 50-50!
909-930-9159

[Alleon Healthcare]

If this client is still looking for financing we would look at this as a factoring or ABL line of credit deal. Medical AR is our specialty.