[k lion]

Does anyone know who is still funding construction?

[VitalCapJeff]

Hello Partner, hope all is well Sir.

We are still funding construction under our temp guidelines. -

Construction - $100k+ gross monthly - case by case

Essential subcontractors such as Plumbers, electricians and so on.- $75k+ gross monthly

Remodeling is temporarily restricted.

Reach out if you’d like to discuss this one further.

[KanjorskiPartners]

We just refinanced an electrical contractor w/ $440k in MCA and gave them $30,000 in working capital. Their payment went from $137k-ish per month between 6 advances to $26k ONCE per month on a term loan (including the working capital payback). If that applies to your file, please contact me. Thank you.

[fin4all]

We just refinanced an electrical contractor w/ $440k in MCA and gave them $30,000 in working capital. Their payment went from $137k-ish per month between 6 advances to $26k ONCE per month on a term loan (including the working capital payback). If that applies to your file, please contact me. Thank you.

lol didn't admin tell you to stop spamming ? also please break down the math on that example...

[KanjorskiPartners]

I will gladly breakdown the transaction for you and this is certainly not spamming. This is the answering of a question and the explanation of our product that you just asked about. This is a thread discussion fin4all. We are funding construction refinances and we are continuing to.

Here are the exact numbers from a recent financing of our new borrower:

Merchant was paying per month the following-
Broadway $2370.45 daily ($52,149.90 per month) avg 22 days per month
OnDeck $1322.75 daily ($29,100.50 per month) avg 22 days per month
Funding Metrics $1135.00 daily ($24,970 per month) avg 22 days per month
LG $600.00 daily ($13,200 per month) avg 22 days per month
CLG Servicing $6041.67 per week ($24,166.68 per month) avg 4 weeks per month

Total Monthly Payments prior to refinance: $143,587.08 (avg per month depending on number of business days)

Balance at the time of refinance by us: $441,000
New Working Capital delivered to our borrower at closing: $30,000
Final New Borrower Principal after origination and legal fees: $500,000 principal
APR: 25%
Term: 2 years
Amortization: 24 months

New Payment comprised of $440k refinance & $30k working capital: $26,041.67 payment ONCE PER MONTH on a simple interest 12-month term loan on a 24-month amortization (balloon payment due on 12th month or balloon to be renewed or refinanced)

[RickyR3712]

I will gladly breakdown the transaction for you and this is certainly not spamming. This is the answering of a question and the explanation of our product that you just asked about. This is a thread discussion fin4all. We are funding construction refinances and we are continuing to.

Here are the exact numbers from a recent financing of our new borrower:

Merchant was paying per month the following-
Broadway $2370.45 daily ($52,149.90 per month) avg 22 days per month
OnDeck $1322.75 daily ($29,100.50 per month) avg 22 days per month
Funding Metrics $1135.00 daily ($24,970 per month) avg 22 days per month
LG $600.00 daily ($13,200 per month) avg 22 days per month
CLG Servicing $6041.67 per week ($24,166.68 per month) avg 4 weeks per month

Total Monthly Payments prior to refinance: $143,587.08 (avg per month depending on number of business days)

Balance at the time of refinance by us: $441,000
New Working Capital delivered to our borrower at closing: $30,000
Final New Borrower Principal after origination and legal fees: $500,000 principal
APR: 25%
Term: 2 years
Amortization: 24 months

New Payment comprised of $440k refinance & $30k working capital: $26,041.67 payment ONCE PER MONTH on a simple interest 24-month term loan on a 24-month amortization (balloon payment due on 24th month or balloon to be renewed or refinanced)

Of the 441k how much was actually paid off and how much was negotiated? Is the merchant aware that is happening? Why will you not offer this product to merchants that do not have balances even at a higher interest?I asked these questions to another on here offering same product months ago(that was also a lead seller) and they disappeared after.Hopefully we can get answers now.

[AnotherJoe]

Vital is not funding construction. I asked on Friday if they were and what I needed to submit. Send it all today and was declined right away for industry. File is 4x their gross monthly requirement.

Is anybody really funding construction? In CA to be precise.

*Edit - Only 1 balance for $10k from a $140k 12 month advance done last year May 2019. No missed payments and not a single overdraft or negative day. That lender isn't renewing though.

*2nd Edit - Vital came back with something.

[The LCF Group]

Vital is not funding construction. I asked on Friday if they were and what I needed to submit. Send it all today and was declined right away for industry. File is 4x their gross monthly requirement.

Is anybody really funding construction? In CA to be precise.

*Edit - Only 1 balance for $10k from a $140k 12 month advance done last year May 2019. No missed payments and not a single overdraft or negative day. That lender isn't renewing though.

*2nd Edit - Vital came back with something.

LCF is funding construction selectively. We are funding specialized contractors ( electricians, plumbers, HVAC, etc. )

General contractors are currently an auto decline - however if you reply to the decline with AR and WIP showing that they are working on an essential infrastructure job ( contract with the government, work on schools, hospitals, affordable housing , etc ) we will take another look and make an offer. If they are only working on residential jobs, we will decline.

[KanjorskiPartners]

Of the 441k how much was actually paid off and how much was negotiated? Is the merchant aware that is happening? Why will you not offer this product to merchants that do not have balances even at a higher interest?I asked these questions to another on here offering same product months ago(that was also a lead seller) and they disappeared after.Hopefully we can get answers now.

The final payoff amount is proprietary and varies on every transaction. It is a friendly and reasonable negotiation with the MCA companies based on their exposure and return as well as our proper APR & discount to write the credit. We do not interfere with tort law. It is a mutual transaction between us and the MCA companies.

The merchant is 100% aware of everything we are doing in the transaction and it is explained from the beginning. We would consider a merchant that does not have a balance but we comply with all usury laws everywhere we lend and cannot do the transaction if the interest rate needs to exceed the usury cap for commercial, non-mortgage lending. All in all, our product is designed to de-leverage businesses that are good businesses but over leveraged with MCA stacks or even just one MCA. We simply extend amortization and term by refinancing the MCAs. This exposes us to more risk, hence our deeper underwriting (cash flow and assets are considered) and slightly longer process than a 24 to 48 hour MCA advance.

There may have been brokers on here that offer our product that were probably on here previously. I only started posting and participating on this site recently.

[RickyR3712]

The final payoff amount is proprietary and varies on every transaction. It is a friendly and reasonable negotiation with the MCA companies based on their exposure and return as well as our proper APR & discount to write the credit. We do not interfere with tort law. It is a mutual transaction between us and the MCA companies.

The merchant is 100% aware of everything we are doing in the transaction and it is explained from the beginning. We would consider a merchant that does not have a balance but we comply with all usury laws everywhere we lend and cannot do the transaction if the interest rate needs to exceed the usury cap for commercial, non-mortgage lending. All in all, our product is designed to de-leverage businesses that are good businesses but over leveraged with MCA stacks or even just one MCA. We simply extend amortization and term by refinancing the MCAs. This exposes us to more risk, hence our deeper underwriting (cash flow and assets are considered) and slightly longer process than a 24 to 48 hour MCA advance.

There may have been brokers on here that offer our product that were probably on here previously. I only started posting and participating on this site recently.

Thank you for your response. To be clear the merchant knows what the true interest is regardless of the 25% that's on the contract.

[KanjorskiPartners]

The merchant knows that the par value of the outstanding MCAs is refinanced into a term loan with a 25% APR.

The cost of capital is stated clearly on our promissory note and credit agreement.

[budlightboy]

Wow, so you guys take a merchant with 400k in MCA debt, negotiate that down to 200k and then do a 400k ("par value") loan (plus whatever measly cashout you'll give) at ~25% over 24-36 months. PLUS "legal fees"... And I thought I'd seen it all....

What balloons at the end? The explanation you gave above has a repayment of 625k on a 500k "loan amount," what's left over to refinance or payoff at the 24th month?

[KanjorskiPartners]

The initial term is typically 12 month term and 24-month amortization. We also do a 24-month term on a 36-month amortization. We unwind toxic merchant cash advances and actually help businesses survive and then thrive. We don't charge effective APR of 60% up to 100%+ like MCA companies do hidden under the disguise of "factoring" when they are really just lending.