[Bcooper]

hey yall,

I've got a fairly unique deal, the merchant is generating around 1 mil a month. merchant lowered payments on three lenders a while back but never stopped paying. I've got a hard approval from one of the SBA banks I work with for 1.5 million to buy out all of the debt. I need around 500k to buy out the positions the SBA considers as debt not in good standing so that I can move forward with it and get everyone bought out. The Mca's he modified are all under 50%. I've got every piece of info you could want for collectibility merch has a high volume of cc deposits which I have statements for and access to. If you think this is something that is up your alley please feel free to reach out, I will do background on any prospective lenders so please don't waste my time if you are a fellow broker.

[abfunders]

Find out if there is any collateral that could be used now that the SBA afterwards would buy out as "good" debt.

[Bcooper]

Find out if there is any collateral that could be used now that the SBA afterwards would buy out as "good" debt.

already using the collateral for the sba loan

[Olderguy]

already using the collateral for the sba loan

You can get some collateral removed from the assets...for example, any trucks and equipment can be removed as it would be difficult to sell them within that 10 year term. You have to make that request to underwriting. I have been able to do that. So many SBA clients have vehicles, trucks, etc that don't have a 10 year life expectancy.

[Bcooper]

You can get some collateral removed from the assets...for example, any trucks and equipment can be removed as it would be difficult to sell them within that 10 year term. You have to make that request to underwriting. I have been able to do that. So many SBA clients have vehicles, trucks, etc that don't have a 10 year life expectancy.

Bud as I stated assets that could be used as collateral are included in the sba to get it done. I'm not some amateur that doesn't understand how an sba works if I could remove collateral I wouldn't be posting on here but all of its nesecary for the sba..

[Olderguy]

Bud as I stated assets that could be used as collateral are included in the sba to get it done. I'm not some amateur that doesn't understand how an sba works if I could remove collateral I wouldn't be posting on here but all of its necessary for the sba..

I guess you don't understand my post...you CAN remove/separate assets and still do a SBA 7A. I've done it. If you have enough collateral, you can use just the collateral that covers 85% of the loan amount.

[Bcooper]

I guess you don't understand my post...you CAN remove/separate assets and still do a SBA 7A. I've done it. If you have enough collateral, you can use just the collateral that covers 85% of the loan amount.

that is what I am trying to tell you steve the only assets he has are being used to cover the 85% there aren't any spare assets that can be used. which is what I have told you three times now if he had the equipment or a property that wasn't needed for the 7 a I would have already used it or I would have given him a larger 7a loan approval.

[Hedley Lamarr]

Silly Question: I know the AR might be wrapped up in the SBA. If there is any AR, how much is outstanding?

I have cleaned up many MCA messes that stacked an SBA facility. I financed the AR and sometime AR/Inventory. The MCAs and some of the SBA was paid down and the SBA took security in the other assets: M&E/Real Estate.
Some were factoring. The larger deals were ABL.

Basically used the more liquid assets in a revolving facility that picked up more liquidity than the SBA.

[Bcooper]

Silly Question: I know the AR might be wrapped up in the SBA. If there is any AR, how much is outstanding?

I have cleaned up many MCA messes that stacked an SBA facility. I financed the AR and sometime AR/Inventory. The MCAs and some of the SBA was paid down and the SBA took security in the other assets: M&E/Real Estate.
Some were factoring. The larger deals were ABL.

Basically used the more liquid assets in a revolving facility that picked up more liquidity than the SBA.

there's no ar report just a massive amount of cc deposits there's also no inventory

[Olderguy]

that is what I am trying to tell you steve the only assets he has are being used to cover the 85% there aren't any spare assets that can be used. which is what I have told you three times now if he had the equipment or a property that wasn't needed for the 7 a I would have already used it or I would have given him a larger 7a loan approval.

Got it...guess it wasn't clear to me that all you had was the 85%.

[Bcooper]

Got it...guess it wasn't clear to me that all you had was the 85%.

sorry if it was not clear but he's asset poor and cash rich, there's nothing to latch onto other than his banks and cc

[Olderguy]

I am assuming you are dealing with a SBA bank. Have you tried to reach out to a non bank SBA lender? I have found they have more leeway is dealing with this type of situation. Maybe not the same exact scenario but I got a SBA 7A funded with a client who was behind a bunch of his MCA loans. I can connect you with an assistant VP at my non bank SBA lender if you want to reach out and ask.

[mistamca]

hey yall,

I've got a fairly unique deal, the merchant is generating around 1 mil a month. merchant lowered payments on three lenders a while back but never stopped paying. I've got a hard approval from one of the SBA banks I work with for 1.5 million to buy out all of the debt. I need around 500k to buy out the positions the SBA considers as debt not in good standing so that I can move forward with it and get everyone bought out. The Mca's he modified are all under 50%. I've got every piece of info you could want for collectibility merch has a high volume of cc deposits which I have statements for and access to. If you think this is something that is up your alley please feel free to reach out, I will do background on any prospective lenders so please don't waste my time if you are a fellow broker.

Any quality SBA lender is not on this site. If you don't want to work with a broker, then you aren't going to get much help to be honest. This is a common situation and most SBA lenders (especially ones that quickly flip their loans) don't care about. Most quality SBA lenders will "ignore" one or 2 negative line items. The problem is when there are "small" issues throughout the file & then the underwriter will fixate on a single problem.

[Sachip24]

What the total outstanding balances of the mca's you need paid off?

[Bcooper]

What the total outstanding balances of the mca's you need paid off?

Do you work for 24 capital?

[Sachip24]

Do you work for 24 capital?

absolutely not. reach out to Steve at QuickStone all they do is cc holdback deals he may be able to assist not sure what their max loan amount is though

[CLARITYMAC]

How long ago did he lower payments, and did any of the funders file a judgment against him?