Results 1 to 6 of 6
-
08-07-2019, 05:03 PM #1
- Join Date
- Mar 2015
- Location
- Boynton Beach
- Posts
- 3,490
Industry that will need alternative financing partners.
Hey DF,
I am NOT intending to open a political discussion here....just giving out some ideas for those that are eager to go after business in a specific industry.
Weapons and anything related to weapons: Manufacturers, retailers and distributor of guns and ammo have found themselves in a peculiar situation. Banks are running away from the industry while there is demand for product. For the last 18 months traditional lenders (present company included) have avoided the industry due to headline risk.
Ultimately these companies will be forced to find alternative lenders that are willing to lend to the industry. I have seen numerous deals ranging from $250K to well over $30Mil in the industry. All are being told by their banks to seek another lender as they are no longer going to lend to the industry.
Just an idea for those that are willing to put in some work and have the ability to lend to the industry.
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
-
08-08-2019, 02:35 PM #2
- Join Date
- Oct 2015
- Location
- NYC
- Posts
- 119
Makes sense. I have noticed a surge in firearm sales, which is a prohibited industry for us.
-
08-08-2019, 02:45 PM #3
- Join Date
- Mar 2015
- Location
- Boynton Beach
- Posts
- 3,490
In the last 12 months I have seen well over $100Mil in loans looking for a new home and we do ZERO marketing in the industry...ZERO. Crazy.... Some of these companies have great margins, great end customers that pay quick, and throw off cash like crazy. Most that I have seen can't keep enough inventory on hand.
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
-
08-08-2019, 03:16 PM #4
- Join Date
- Oct 2014
- Location
- Naples, FL
- Posts
- 474
-
08-08-2019, 03:20 PM #5
- Join Date
- Mar 2015
- Location
- Boynton Beach
- Posts
- 3,490
Most that I have seen have ABL or lines of credits with large banks. Deal sizes from $1Mil to $30Mil. Expectations: I had one company tell me he would sign any deal under 15%. That was an $8M ABL facility for a $50Mil manufacturer that nets $2.5Mil/Year.
We cannot finance the industry....
There are tons of manufacturers, distributors, and even more retail shops in the industry that could like be asked to leave by their bank.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
-
10-05-2019, 06:32 PM #6
- Join Date
- Sep 2019
- Posts
- 4
In regards to this..what lenders do anyone know of and can share here that would fund and work with these types of companies and not on the banned list. Thanks!
Similar Threads
-
Three small business alternative lenders join forces to change the industry
By CHAMP3 in forum Business LoansReplies: 0Last Post: 05-11-2016, 12:19 PM -
PledgeCap - ALTERNATIVE FINANCING
By PledgeCap- A.E. in forum PromotionsReplies: 0Last Post: 04-01-2015, 02:13 PM -
What is the difference between a traditional and alternative method of financing?
By bdshaw in forum Business LoansReplies: 0Last Post: 10-07-2014, 09:20 AM