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  1. #1
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    Easy lockbox spit deal, if you don't mind a lot of negative days

    This merchant has a $30k balance with Quikstone. Lockbox split at 14%. This has been renewed 5 times (technically, QS only does add-on's, no double factoring). He is about 30 days from being eligible for add on capital.
    11 yr old restaurant in GA.
    $80k/mo cc volume (annual average)
    (Heading into slower volume time, avg is $55k for D,J,F)
    Credit is 580
    12 - 16 negative days every month. (Shouldn't matter since funder receives cc funds before the merchant does via lockbox). QS understands this well.

    Needs $30k for some kitchen equipment and funds to maximize seating due to Covid.

    All direct lenders, please reach out if you want this deal. He can't switch processing due to POS.
    Shannon Harris
    Funding Specialist
    888-705-8818 phone
    239-790-2664 fax
    Shannon@StellarBusinessFunding.com
    www.stellarbusinessfunding.com

  2. #2
    Senior Member Reputation points: 81655
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    Quote Originally Posted by SBF View Post
    This merchant has a $30k balance with Quikstone. Lockbox split at 14%. This has been renewed 5 times (technically, QS only does add-on's, no double factoring). He is about 30 days from being eligible for add on capital.
    11 yr old restaurant in GA.
    $80k/mo cc volume (annual average)
    (Heading into slower volume time, avg is $55k for D,J,F)
    Credit is 580
    12 - 16 negative days every month. (Shouldn't matter since funder receives cc funds before the merchant does via lockbox). QS understands this well.

    Needs $30k for some kitchen equipment and funds to maximize seating due to Covid.

    All direct lenders, please reach out if you want this deal. He can't switch processing due to POS.
    Quikstone has already purchased 100% of the merchants future receivables & has a "No Stacking Clause"
    - with a very generous payback of 14% per day.
    $80K per month in cc sales, but, you stated that his gross revenue will drop to $55K - ( 30% drop ),
    which indicates a longer payback period on existing MCA
    Poor Credit

    Time to let this fish swim away.
    Dave Lambert, Business Development
    dave@fcbankcard.com
    Merchant Services Consultant
    High Risk Merchant Payment Solutions
    SBA 7(a) Loans & Short-Term Funding
    T/VM: 727-291-7890
    Office: 727-233-1111
    Skype: fc-financial

  3. #3
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    Thanks for pointing out the "no stacking" policy. For clarification, merchant is looking for a $60k offer, and net $30k.

  4. #4
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    Quote Originally Posted by SBF View Post
    Thanks for pointing out the "no stacking" policy. For clarification, merchant is looking for a $60k offer, and net $30k.

    The numbers don't add up. He wants 100% of his lowered revenue. pay off $30K and attempt to net $30K.
    If someone were to fund the merchant, he would pay-off expensive $$ with higher expensive $$$'s.

    His best bet is to do everything to maintain his current sales volume (even discounting meals at 15% is cheaper that MCA $$ @ 1.49 or 1.55)

    Pay off the $30K @ 14% hold back @ a 60$K credit card volume is $8400.00 per month, in 3/4 months he is done.
    Dave Lambert, Business Development
    dave@fcbankcard.com
    Merchant Services Consultant
    High Risk Merchant Payment Solutions
    SBA 7(a) Loans & Short-Term Funding
    T/VM: 727-291-7890
    Office: 727-233-1111
    Skype: fc-financial

  5. #5
    Senior Member Reputation points: 4457
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    Quote Originally Posted by Yankeeman07 View Post
    The numbers don't add up. He wants 100% of his lowered revenue. pay off $30K and attempt to net $30K.
    If someone were to fund the merchant, he would pay-off expensive $$ with higher expensive $$$'s.

    His best bet is to do everything to maintain his current sales volume (even discounting meals at 15% is cheaper that MCA $$ @ 1.49 or 1.55)

    Pay off the $30K @ 14% hold back @ a 60$K credit card volume is $8400.00 per month, in 3/4 months he is done.
    These are good suggestions Dave.. and the merchant is implementing discounts to bring in more biz.. I agree he should wait.. however, the merchant needs a substantial cash injection.. and then in 3 or 4 months, he will be entering his busier time and will manage to pull through. Let's all hope these businesses can obtain a helping hand (grant money) very soon.
    Shannon Harris
    Funding Specialist
    888-705-8818 phone
    239-790-2664 fax
    Shannon@StellarBusinessFunding.com
    www.stellarbusinessfunding.com

  6. #6
    Senior Member Reputation points: 81655
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    Quote Originally Posted by SBF View Post
    These are good suggestions Dave.. and the merchant is implementing discounts to bring in more biz.. I agree he should wait.. however, the merchant needs a substantial cash injection.. and then in 3 or 4 months, he will be entering his busier time and will manage to pull through. Let's all hope these businesses can obtain a helping hand (grant money) very soon.
    Let's us hope that Congress provides at least 1 more cash infusion - Way too many business owners are not going to survive,
    How much debt do they expect a biz owner to add to his/her balance sheet.

    Keep an eye on the SBA Web Site - rumor has it that EIDL is going to re-open - $$$ is available that was never applied for.

    Politicians created this mess and none have a good answer - shutting down did not stop the Chinese Communist Virus - why in the world
    would they think additional shut-downs will work - time to get off my soap-box
    Dave Lambert, Business Development
    dave@fcbankcard.com
    Merchant Services Consultant
    High Risk Merchant Payment Solutions
    SBA 7(a) Loans & Short-Term Funding
    T/VM: 727-291-7890
    Office: 727-233-1111
    Skype: fc-financial

  7. #7
    Senior Member Reputation points: 4457
    Join Date
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    Quote Originally Posted by Yankeeman07 View Post
    Let's us hope that Congress provides at least 1 more cash infusion - Way too many business owners are not going to survive,
    How much debt do they expect a biz owner to add to his/her balance sheet.

    Keep an eye on the SBA Web Site - rumor has it that EIDL is going to re-open - $$$ is available that was never applied for.

    Politicians created this mess and none have a good answer - shutting down did not stop the Chinese Communist Virus - why in the world
    would they think additional shut-downs will work - time to get off my soap-box
    The Loan side of EIDL is open until 12/31/2020. Hopefully, the "Advance/Grant" side will re-open soon!
    Shannon Harris
    Funding Specialist
    888-705-8818 phone
    239-790-2664 fax
    Shannon@StellarBusinessFunding.com
    www.stellarbusinessfunding.com

  8. #8
    Senior Member Reputation points: 203054
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    he's negative half of the month because of that hold back...you get him another cc deal and his volume drops he will never be in the green.

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