[helpinghand]

We're in Cleveland and EVERYTHING is shut down right now. Lots of people asking us for capital. We were discussing internally and thought I'd ask you guys...

QUESTIONS for LENDERS:

How will you account for the zero revenue during quarantine period?
Clearly revenues have fallen off a cliff, so will that preclude you from funding?

I imagine lenders will continue to fund, but will request payback months and scrutinize other aspects of the deal more so than usual.

Thoughts? We'd like to get an idea so we can prepare...

[SFC]

We're in Cleveland and EVERYTHING is shut down right now. Lots of people asking us for capital. We were discussing internally and thought I'd ask you guys...

QUESTIONS for LENDERS:

How will you account for the zero revenue during quarantine period?
Clearly revenues have fallen off a cliff, so will that preclude you from funding?

I imagine lenders will continue to fund, but will request payback months and scrutinize other aspects of the deal more so than usual.

Thoughts? We'd like to get an idea so we can prepare...

It'll be EXTREMELY difficult. This is a Herculean task. Its unprecedented that businesses just CLOSED. By no fault of their own. The government just closed them.

Assume in July or August its safe to go out and some semblance of life is back...

Payback months are a MUST. But how do you know if a company has missed all their rent payments and will be evicted? How do you know if they aren't just trying to take the advance before they close (this will be rampant)? How do you know what a revenue ramp looks like, to go from 0 business to back to business, payback months won't be so insightful.

I think you need to prepare that EVERYTHING and ANYTHING will be on the table. Extensive merchant interviews. Site inspections. Lower funding amounts, higher factor rates, lower commissions (there will be way more demand than supply) and it'll be a slow process because most funders will want to see a month or two of activity before they jump back in the water.

[happyman]

I assume it will be like it was during hurricane season last year. Deals in Houston and Florida saw no rev for 1 or 2 months. We didnt kill deals for that reason we just took into consideration the situation that they were in a look at payback months and other factors.

[helpinghand]

Yes agree. All stips are on the table... gotta verify rent payments or if not paid, proof of waiver/relief from LL.