[BigDogFinancing]

Why would a funder be interested in a trucking portfolio with a minimum of 10 trucks, or only consider construction projects worth millions? If funders are apprehensive about these industries, why focus solely on high-risk, high-exposure ventures? It would be more prudent to consider smaller, quality portfolios. It's illogical to only fund a trucking business if it has 20 trucks and generates a million in revenue. Why would you want to invest $500k in a trucking business if you're not confident in the industry?

[Olderguy]

Well in all honesty we get SBA loans and Master Credit lines for equipment for those types of clients.

Just funded a trucker for $900,000 SBA 7A.

Have another looking at $2MM SBA, and they signed the agreement for a Master Credit Equipment Line...

I realize that wasn't the intent of your post, but there are real A paper loan options for those types of companies. (And yes Newtek doesn't do either)

The smaller ones, yes are high risk. Most SBA lenders won't touch trucking or constrution.

But like any funder you need to look at the financials and weight the risk. HIgh risk means high factor rates and you have to take into consideration that if a truck goes down, there goes your clients revenue.

[CornerStoneFunding]

Why would a funder be interested in a trucking portfolio with a minimum of 10 trucks, or only consider construction projects worth millions? If funders are apprehensive about these industries, why focus solely on high-risk, high-exposure ventures? It would be more prudent to consider smaller, quality portfolios. It's illogical to only fund a trucking business if it has 20 trucks and generates a million in revenue. Why would you want to invest $500k in a trucking business if you're not confident in the industry?

in those two industries, they relay heavily on getting invoices paid from their vendors/clients. if the merchant is doing smaller than normal volume and has no money coming in due to invoices not getting paid, they will end up falling negative in their banks which will ultimately make them bounce our debit multiple days in a row causing them to fall into collections