[Capital F]

I'd expect the initial reaction would be "this is the way a funder collects/protects the unsecured funds in worst-case scenario and if the merchant doesn't want to sign it, it implies he has intentions of not paying back" Which I understand.

Client is doing approx $3m annual rev, 700+ FICO, 30k ADB, and just seeking a 150k-250k MCA, unsecured LOC or short TL for projects but since merchant has a lot of personal assets doesn't want to sign a PG and potentially risk them.

I am looking for reputable funders that are known in the industry and have been around for a few years at least. Bluevine, Ondeck and I believe IOU all require it.

Would love to hear from the forum. Thanks!

[abecollins]

I could take a look at this. Send the file to abe@mcacapitalholdings.com

[Yankeeman07]

I'd expect the initial reaction would be "this is the way a funder collects/protects the unsecured funds in worst-case scenario and if the merchant doesn't want to sign it, it implies he has intentions of not paying back" Which I understand.

Client is doing approx $3m annual rev, 700+ FICO, 30k ADB, and just seeking a 150k-250k MCA, unsecured LOC or short TL for projects but since merchant has a lot of personal assets doesn't want to sign a PG and potentially risk them.

I am looking for reputable funders that are known in the industry and have been around for a few years at least. Bluevine, Ondeck and I believe IOU all require it.

Would love to hear from the forum. Thanks!

Would be helpful if you posted in the correct section of the DF and disclosed who you are.

I always find these posts interesting - a merchant with a 700+ FICO, wants $150K but does not want to put his/her own skin in the game.

That being said, I have resources that do not require a PG, but the file has to be real strong.

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[abfunders]

It's like a sport! Dave, no PG does NOT mean "no skin in the game." It just means that their business revenue is all they're willing to sacrifice, and if they default, nobody's coming after their personal bank account or car or house. IMHO, "no PG" is a mistake, since regular non-bank lenders won't have anything to do with hitting their credit on a default, and to get through the LLC in a lawsuit will take some time, then they collect from the business assets, and only then can they get to the business. In AR deals, it's the silliest thing to run away from a PG, since the only thing a PG will do is keep the merchant actively involved in making sure that the collections process continues and they don't disappear into thin air if there's a default.

[Capital F]

I appreciate all the feedback on this forum. I agree with you Micah that a PG is a valid and highly recommended clause on our industry's main products and across the board in the MCA industry is almost always required which is why I thought to prompt the question to see if some funders do not require it.

Dave I am an MCA broker with roughly 7 years of experience and just prefer not list my contact info on the DF (I am aware of the forum rules and preferences) If you PM me I'd gladly provide my all my company and contact info. As I do with all my clients, I broke down the reasoning for the PG to the merchant (and everything else required to know about an MCA/TL/LOC) Currently working on closing a 70k LOC with Bluevine (with IOU 150k option on top) Still open to hearing other options and in general funders that don't require PG.

Also, I meant to post this in the correct section of DF (dealbin) where would you say is the correct section?