[Kevin Henry-Seacoast]

Client is a multi-state janitorial service with annual sales of aprox: $14MM.
Looking to borrow approx: $1MM.
Would like to have monthly payments.
Can anyone do this?

The big question is always why....... Why does the company need $1Mil? Most likely they had a decline in revenue and earnings during the pandemic. The commercial cleaning industry was negatively impacted. A lot of these companies relied on bank lines of credit to help with working capital. Payroll is usually the largest expense. With the decline in the industry many banks reduced or pulled the lines of credit with their janitorial clients. Some are reluctant to restart the line or increase the line as a lot of commercial properties are still not fully utilized. They may want to consider financing their accounts receivables with an asset-based line of credit or factoring facility. There are many great options in the market with bank owned finance companies that provide these facilities. Most pay referral fees to brokers. They will certainly be a lot more cost effective and give the company an option to transition back to a line of credit down the road. SBA and term loans are interesting options, but if the main need is for payroll, they are NOT good options as they are NOT revolving facilities.