[Steven_O]

Hello DF Members! I have a merchant who needs $150k to purchase specialized machinery for their pharmaceutical company.

Last 6 months look like this:
- June 2014 $93k in deposits, no nsfs, avg daily balances of about $15-20k
- July 2014 $109k in deposits, no nsfs, avg daily balances of about $17-$25k
- August 2014 $108k in deposits, no nsfs, avg daily balances of about $30-$35k
- Sept 2014 $46k in deposits, 1 nsf, avg daily balance of about $5-7k
- Oct 2014 18k in deposits, no nsfs, avg daily balance of about $5k
- Nov 2014 $20k in deposits, no nsgs, avg daily balance of about $4-6k

The merchant deals a lot in cash business. Most deposits are large cash counter credits. He has had steady banking for 2 years, and in business for 4 years.

Lots of regulation changing in his industry might make him high risk.

Can I get some advice on this file? Advice from: Broker, Lenders and Counselors welcomed.

Thank You!

[Chambo]

"Might" make them high risk? Declining sales volume (hopefully just going into the winter months they are down & it's not a more alarming trend)

Only prayer this merchant has for $150,000 is if they are doing $300,000 a month in the 1Q of the year. However, based on October and November alone, you'd be lucky to see $15,000.

[Steven_O]

Declining deposits are due to infrastructure changes. They aren't in production again until next month. Jan - June 2014 show 90-100k consistently.

I also didn't mention that the machinery company will finance 72k of it, leaving a 38k difference which I'm trying to get him.

I'm less than 2 weeks into this business... I didn't think it was possible either Chambo... but that's why I'm turning to DF. Maybe there are other options.

Thank you all!

[RichardGerard]

Touch base at your convenience.. Can specialized equipment be leased as opposed to purchased? Richard 516 510 3855 or rg@businesscapitalconsultants.com

[Andy]

Declining deposits are due to infrastructure changes. They aren't in production again until next month. Jan - June 2014 show 90-100k consistently.

I also didn't mention that the machinery company will finance 72k of it, leaving a 38k difference which I'm trying to get him.

I'm less than 2 weeks into this business... I didn't think it was possible either Chambo... but that's why I'm turning to DF. Maybe there are other options.

Thank you all!

So you only need to get them 38k? Should definitely be doable , will require full 12 months worth of bank statements due to declining sales. As long as you can show that its a normal business cycle for him, these are his slow months, then 38k should not be a problem. If you need help getting it done, PM me.

[mcaguru]

Sign-Up with Cresthill Capital (Aside for just our HIGHEST COMMISSIONS in the HIGH RISK ARENA!) we can probably make a sweet offer (after understanding why the falling deposits maybe will look at the payback months in the event its a season-play).

http://cresthillcapital.com/index.html#iso

or email me at bizdev@cresthillcapital.com

[fundit]

I would check out some equipment leasing companies. See if they can do the entire amount at a better rate than a combination of the seller and a cash advance. Commissions on leasing are generally pretty good.

[mcaguru]

Marlin Leasing and Time payment are good players in the leasing space.

[michaelh]

You have Lots of options for leasing and depending on credit rates as low as 7 percent and still get 7 to 8 point commissions

[Erin Dreselly]

This is definitely do able. Please contact me to get this funded!

[TBurd]

Steven_O were a direct lender on the Equipment Financing side, we have a few options you can explore for your merchant. If your interested shoot me an email tburd@stradacapital.com

[ezcapital]

I would be happy to take a look at this one for you