[1Loanguy]

Client has 4 big projects in the pipeline, needs 100-150k second position.
First position is a NEWTEK loan for 228k
Feb was superlight
Feb 1 deposit for 7500 (yes less than 8K)
Jan 3 deposits for 62k
Dec 3 Deposits for 250K
November 3 deposits for 125k

Outstanding A/R is 450k

[Kevin Henry-Seacoast]

Client has 4 big projects in the pipeline, needs 100-150k second position.
First position is a NEWTEK loan for 228k
Feb was superlight
Feb 1 deposit for 7500 (yes less than 8K)
Jan 3 deposits for 62k
Dec 3 Deposits for 250K
November 3 deposits for 125k

Outstanding A/R is 450k

Software companies can be tricky to finance. Are they selling a license for software and pre-billing the license or are they coding and billing for time? We like coding companies.

[mcaguru]

you can try Mantis ... A/R helps at mantis ... it can go either way ..I get complimentary emails all the time hey Marcus mantis just funded a file no one else wanted to touch or for the amount.

[sigmundpannu]

Software companies can be tricky to finance. Are they selling a license for software and pre-billing the license or are they coding and billing for time? We like coding companies.

Kevin, NEWTEK May be an SBA loan, and if so wouldn’t that be an issue for a factor since they probably have a lien including A/R?

[Kevin Henry-Seacoast]

Kevin, NEWTEK May be an SBA loan, and if so wouldn’t that be an issue for a factor since they probably have a lien including A/R?

No. We would have to have enough availability to pay them off or have them subordinate behind us....which they have done.

Here in-lies the pitfalls of using SBA loans to finance working capital for a growing company. Eventually you will hit a wall if you do your job right.

[Finance Guru]

We could help with this file.