Need a Funder or Vendor? START HERE

Results 1 to 4 of 4
  1. #1
    Senior Member Reputation points: 3829
    Join Date
    Sep 2021
    Posts
    172

    Sba 7a

    I have a merchant looking for one. Does anyone do this directly?

  2. #2
    Senior Member Reputation points: 66298 Olderguy's Avatar
    Join Date
    Sep 2021
    Location
    Irvine, CA
    Posts
    2,087

    Yeah but if you don't have the experience I wouldn't bother. I've done a lot of these and I split the commission. And you need to understand there are SBA bank and SBA non bank lenders. The non bank lender can collateralize personal assets. And have more flexible guidelines. You can also get non-collateralized SBA 7A up to $350,000.

    Reach out and I'll help you with this...if you decide to do it yourself, that's your choice.

    Here's an example of one I did:

    Getting a SBA approval that a broker was denied by his SBA lender:


    Here's what the broker submitted to his SBA bank:

    Covid has had very little impact on our business. During the height of the pandemic, we did some deep sanitizing which was a profit center. Except for the hassles of dealing with contractors getting sick and having to deal with scheduling, operations have remained stable.

    We are currently billing 103 different clients. We operate as a contract cleaning company. This simply means that we have contracts and are billing one time per month for services. Cleaning schedules range from 1 service monthly to 365 day per year service.

    We are simply looking to consolidate the debt that we currently have. This will give us the flexibility to pursue additional contracts and continue expansion. We are currently bidding 5 different contracts. One of the contracts will be approximately $2600.00 per Month. Three of the proposals are small accounts that would be $275- $400 per month. If we can come to terms, one of the contracts would total $22000.00 per month. These are the contracts that I need financial flexibility to pursue. Our largest current contract is about $5900.00 per Month. One as large as $22000, will require me to lay out about $15000 before receiving the first check.

    His SBA bank denied the loan...

    HERE'S WHAT I SUBMITTED:

    We are seeking $350,000 in SBA 7A financing to:

    A. Consolidate business debt and reduce debt payments
    B. Obtain working capital to service current bids that are pending awaiting capitalization.

    We want to pay off $178,00 in 4 high interest business loans that have a monthly expense of $17,373. A SBA 7A at 6% will reduce this to $1,980 a month = saving us $15,393 a month. Note: We have several vehicles that are required for this industry - debt which is separate on the balance sheet and form 2202.

    We are in the process of submitting bids for several new clients. We need $150,000 in additional working capital for labor/materials/overhead to service this new business.

    Client A $275 a month
    Client B $400 a month
    Client C $22,000 a month
    Client D $2,600 a month
    Client E $300 a month

    Total new business bids: $25,5475 a month projected increase in revenue

    We are currently billing 103 different clients operating as a contract cleaning company. Covid has had very little impact on our business. During the height of the pandemic, we were performing deep sanitizing so operations grew in sales and net income.

    Total revenue for 2021: $1,025,000
    Net income: 126,854
    Depreciation: 51,500
    Net income w/o deprec. 178,354

    Total revenue for 2020: $761,109
    Net income (437)
    Depreciation: 138,672
    Net income w/o deprec. 138,235

    Total revenue for 2019: $461,435
    Net income: 12,825
    Deprec: 104,591
    Net income w/o deprec 117,416

    We have two SFR real estate properties and 1 ten acre of land with equity in all to collateralize this loan.

    Fico is a bit below 660 due to a recent purchase of several trucks and use of company credit card equity to help some employees.

    File was denied by a bank SBA lender due to DTI issue but the submission combined vehicles with business loans.

    We received an approval for $350,000 but after underwriting, got final at $250,000. However my lender said after 2 - 3 months of payment history, they would give him another $100,000 for a total of $350,000 under the SBA 7A.
    Last edited by Olderguy; 01-16-2023 at 06:38 PM.
    Steve Benjamin
    Professional Business Loans

    1012 Contessa
    Irvine, CA 92620
    steveprobiz@gmail.com
    https://probizloans.net/
    Broker, Underwriter, general business loan expert
    949.228.1050


    @ 24 hour funding working capital loans
    @ Term loans from 3 years to 10 years at 9.5% and up
    @ Equipment financing up to 7 years
    @ Property loans - Hard Money and traditional - Primary, Investment, commercial, land, fix and flip, construction.
    @ SBA loans - 7A and 504.
    @ Private money equity and debt for major investments
    @ Personal Loans up to gross income from personal tax return.

  3. #3
    Member Reputation points: 10
    Join Date
    Sep 2022
    Location
    Lakewood, NJ
    Posts
    51

    What is the Fico, time in business? Are they looking for sba or term loan? Sba can take 3 weeks to 45 days. Term loans can do in 3 days to 30 days.
    Josh Dan
    B2B Funding LLC
    josh@b2bfundingllc.com
    Super Broker
    (347) 794-1592

  4. #4
    Senior Member Reputation points: 3829
    Join Date
    Sep 2021
    Posts
    172

    Quote Originally Posted by b2bfunding View Post
    What is the Fico, time in business? Are they looking for sba or term loan? Sba can take 3 weeks to 45 days. Term loans can do in 3 days to 30 days.
    I have a person for term. Just looking for a SBA 7a



Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •  


INDUSTRY ANNOUNCEMENTS

BoA launches business loan marketplace
Quickbooks adds new LOC product
Dext Capital upsizes corp note


DIRECTORY