[fintechlooker]

Hello, looking for advice where to go to fund this since I haven't done much if any term loans. Looking for 10 year term loan for business for $2,000,000 for continued business expansion.

Business info, the positives first:
-2022 IRS Return $3.5m Revenue, $1.8 mil Profit on 1065
-No Existing business debt on LLC books (no MCA either)
-Personal Credit Score around 700
-Credit Report has 0 delinquencies
-No Bankrupties either

Negative factors:
-2021, 2020, 2019 IRS returns not much there at all, business was inactive
-Personal Tax returns on all years shows losses from other business and investments
-Personal Debt is currently is high (high debt to credit limit)
-Business has no hard assets, inventory, etc for colleteral

Any suggestions how where to look for getting funding on this?

Also, any thought on how financiable this business could be? I initially am thinking the negative factors could put a stop any sort of funding for $2 million and with 10 year terms.

[Olderguy]

$2M in debt on $3.5M is reaching too high in all probability. If you are generating that kind of profit, why do you need money? Building purchase? Acquisition? Personal assets can be used for collateral at non bank SBA lenders if limited business assets. I'd try SBA first and if declined have private money lenders that might be interested. But again the loan to revenue is suspect. Why do you need $2M all at once for expansion? Break it up - the financial needs if possible. Need more information. Factoring? LOC? With that kind of profitability, can fund with internal growth I would think. Reach out to review if you wish....need more information.

[GoldStandard]

Steve is right and high utilization means sub 700 credit definitely....
Was 2022 even filed and if it was profit or loss?
Most banks will be capped at 10-20% Max of gross revenue if profitable. 7A requires 640+ credit.
To get an SBA 7a you must be profitable on YTD financials if not on taxes.

Is their A/R or R/E Assets?

3 ways to lend are Cash-flow, Credit or Assets....

[srslyfunding]

How does his A/R look? I do invoice factoring - only need an A/R report / most recent aging A/R summary to get you started with some numbers. Please PM me on here.

[cirruscap]

What type of business is this? Revenue model / industry? Why the preference for a 10-year term instead of something more accomodating from the market around 3-5 years? (assuming non-bank/non-SBA). If they're stuck on 10 years, this is leaning more SBA, but if they're flexible on term length there are other non-bank credit groups who can get excited over 1.1x turns of leverage on EBITDA if not 2x+ notwithstanding other factors.

Feel free to reach out and we can discuss the opportunity more if it's still relevant!

[Ehenek]

I am interested. However, if it is a 1065 and they are showing a 1.8M profit on the bottom line is it not a pass through to their personal tax return?
I would be interested in speaking with you. Sounds like you have a nice handle on things.

[cirruscap]

I am interested. However, if it is a 1065 and they are showing a 1.8M profit on the bottom line is it not a pass through to their personal tax return?
I would be interested in speaking with you. Sounds like you have a nice handle on things.

Apologies, Elon, is this directed at me or poster? I believe the latter but want to ensure I'm not overlooking any inquiry. Regardless feel free to connect with me via message/email as you see fit! Cheers