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  1. #1
    Member Reputation points: 1137
    Join Date
    Jun 2016
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    Brooklyn
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    MERCHANT LOOKING FOR SOME CONSOLDATION ON 550K in MCA LOANS

    Merchant has outstanding loans with Altria, Knight and one other MCA of 550K. Merchant does about 1 million a month. He is is in trucking/oil. Has strong AR but does have credit line/loan with his bank in first position so some type of traditional loan consolidating doesn't work. Revenue is strong but main accounts sweep so balances always look off. Looking for a consolidation of not all but maybe two positions, the two lowest being at 117K and 150K. Good credit and strong payment history over the years.

  2. #2
    Senior Member Reputation points: 216519
    Join Date
    Feb 2017
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    3,334

    The bank isn't giving him enough liquidity.
    He should consolidate with a factor and leverage his equipment/trucks combined to get a term product.
    Should be able to muster enough to pay off the bank and the MCAs.
    Then the factor acts like a line of credit, and he can use it more flexibly than the term product that his bank is giving him that's forcing him into the MCA space.

    Alternatively, get a factor that will come in on a second position. I know one that does that

    Reach out to me, I love complicated files like this.

  3. #3
    Senior Member Reputation points: 14746
    Join Date
    Sep 2019
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    Is the A/R from strong credits? I have a direct contact for an aggressive factoring company?

  4. #4
    Sounds like something we can do a reverse on if the merchant is current on payments, shows good balances, and # of deposits are high enough. 30-50% reduction in payments. We can take up to 5 positions on the reverse consolidation and up to $1.5mm. Let me know.

    mike@gandgfunding
    631-681-3343

  5. #5
    Senior Member Reputation points: 337045
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    Mar 2015
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    Rock Ridge
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    3,453

    Another stacked trucking company. Two options: Option 1:
    Call a bankruptcy attorney. Option 2: Depending on what is owed to the bank, find a cost effective factor that can finance all AR. Hopefully there is enough availability to ay off the advances and the bank line. A $12Mil revenue trucking company should NOT be paying higher than 12-15% all-in. Post refinancing seek to finance some of the trucks if needed. This should be done via SBA.

    Expensive capital never works for a trucking company. If they need to reply on expensive money to stay in business.....they should get out of the business.

    If you can't get option 2 done....go for option 1.
    Hedley Lamarr......That's Hedley

  6. #6
    we can do it no problem

  7. #7
    Senior Member Reputation points: 44858
    Join Date
    Apr 2019
    Posts
    319

    Quote Originally Posted by jjmoney1896 View Post
    we can do it no problem
    lol

  8. #8

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