Need a Funder or Vendor? START HERE

Results 1 to 3 of 3
  1. #1
    Senior Member Reputation points: 117
    Join Date
    Apr 2017
    Posts
    127

    "non essential" businesses that are currently open and operating

    What lenders are funding "non essential" businesses that are still open and operating?


    We have a deal doing well over $100k monthly and has payments coming in for $80k + $50k this month, and more payments coming in next month.

    Super clean deal but is getting declined for being non essential.

    No drop in revenue since COVID has started going on.


    Totally understand not funding a non-essential business if the business is closed or had a drop in revenue. That makes complete sense.

    But this business hasn't been affected at all by COVID. They are open and operating and have revenue coming in consistently with no drop in sales.


    Are there any direct lenders out there still using common sense when underwriting deals?

  2. #2
    Senior Member Reputation points: 86751
    Join Date
    Feb 2018
    Posts
    1,346

    after reading that kabbage stopped funding, and, is pivoting to PPP loans, it pretty much says it all of where the bigs are going to for the next 3 months. think thru this, they have a enormous database of existing customers and new applicants daily. they can literally send emails direct to them for PPP and collect 5% per loan with no balance sheet risk - that goes for all fintechs who are approved to be sba lenders for this program
    Last edited by fundingsmbs; 04-02-2020 at 05:16 PM.

  3. #3
    Senior Member Reputation points: 337045
    Join Date
    Mar 2015
    Location
    Rock Ridge
    Posts
    3,453

    Quote Originally Posted by fundingsmbs View Post
    after reading that kabbage stopped funding, and, is pivoting to PPP loans, it pretty much says it all of where the bigs are going to for the next 3 months. think thru this, they have a enormous database of existing customers and new applicants daily. they can literally send emails direct to them for PPP and collect 5% per loan with no balance sheet risk - that goes for all fintechs who are approved to be sba lenders for this program
    They are all attempting to get in on the programs as a way to keep their clients in their portfolio afloat. If they even attempt to use one penny of those funds to pay down advances they will get slammed by an army of regulators.
    Hedley Lamarr......That's Hedley

Similar Threads

  1. "High Risk" Cash Advance" -- Nerd Wallet Article
    By Cfairbank in forum Merchant Cash Advance
    Replies: 17
    Last Post: 10-15-2016, 01:28 PM
  2. Replies: 5
    Last Post: 06-10-2016, 12:02 PM
  3. Replies: 0
    Last Post: 02-02-2015, 11:33 AM
  4. The Difference between "High Risk" and "Additional Positions"
    By WhoisKingsley in forum Merchant Cash Advance
    Replies: 1
    Last Post: 12-01-2014, 10:31 AM
  5. Replies: 5
    Last Post: 09-19-2013, 02:07 AM


Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  


INDUSTRY ANNOUNCEMENTS

BoA launches business loan marketplace
Quickbooks adds new LOC product
Dext Capital upsizes corp note


DIRECTORY