Results 1 to 12 of 12
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11-14-2023, 07:45 PM #1
- Join Date
- Jul 2022
- Posts
- 7
Dentist - Strong credit - Pay off recent funding
Dentist looking to refi recent funding with lower-cost money
$210K existing bal
Mthly revs $300K
TIB 10+ yrs
FICO 800
Bank statements clean
Looking for 18-month term
Direct funders only please.Last edited by lendlend; 11-14-2023 at 07:50 PM.
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11-14-2023, 09:30 PM #2
Let me offer a different point of view as a loan officer.
We have a merchant who has a crappy loan and wants to replace it with a less crappy 18 month loan with lower payments.
I realize that getting this funded will make a good amount of commission to you and your broker shop.
So another approach is to do a bit of an audit to determine why this person doesn't qualify for a 10 years 10.5% SBA or term loan?
In my experience, doctors are terrible at managing their finances. I would offer to just look at their tax return and their YTD P & L and Balance Sheet. Along with some bank statements, I might determine what they could get that would be a better loan.
At the same time, I might be able to identify why they would not immediately qualify for a better one and offer a plan to get them there so they would no longer, ever need a "high interest" MCA.
That might entail getting an accounting services team involved to review their financial health and offer some suggestions to get them where they might qualify for a term loan.
Maybe it's an A/R problem? Maybe they need medical factoring? Do they have equipment on purchase financing that could be changed to sale leaseback to remove as debt on the balance sheet?
How are they handling their cash management?
Legislation is coming to regulate this industry. I suggest you might consider moving forward with the times to expand your scope of offerings to your prospects and clients or you might be out of business.
You would be performing a valuable service to your clients, your broker shop, the industry and yourself.Last edited by Olderguy; 11-15-2023 at 05:13 PM.
Steve Benjamin
Professional Business Loans
522 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.
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11-15-2023, 12:04 PM #3
- Join Date
- May 2023
- Location
- NYC
- Posts
- 7
I have a minute here, your dentist cannot get what he wants. He has a 1st positon Term Loan. When he can net at least 40% of the funding amount, you may find someone but it won't make much sense no matter how you slice it. Just my 2 cents.
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11-15-2023, 04:34 PM #4
- Join Date
- Mar 2014
- Location
- Florida
- Posts
- 2,993
Dave Lambert, Business Development
dave@fcbankcard.com
Merchant Services Consultant
High Risk Merchant Payment Solutions
SBA 7(a) Loans & Short-Term Funding
T/VM: 727-291-7890
Office: 727-233-1111
Skype: fc-financial
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11-15-2023, 11:55 PM #5
- Join Date
- Aug 2018
- Posts
- 877
Aquina health (med deals, 24month terms)
Bankera health group (5 year terms, your best bet)
Iou may touch it as a 1st for 18m
Kapitus may touch it as a 1st for 18m
Biz2credit would touch it but low commish
Fundingcircle (I can sub there but find another iso that can do it for you)
If these reject you should contact Brandon Cooper to get a term loan. If that fails do an sba with Micah abfunders.
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11-15-2023, 11:56 PM #6
- Join Date
- Aug 2018
- Posts
- 877
Also, winglake. They'll touch this. Easily. Low commission though.
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11-16-2023, 04:02 AM #7
- Join Date
- Oct 2022
- Posts
- 295
This is easy. Ship the shugaaa. I would fund them with a SBA and or ABL. If that doesn't work, they can work on my teeth.
Elon Henek
HCI - Glen Cove, NY
Main: 1-516-676-1854
Cell: 1-516-236-4086
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11-16-2023, 12:22 PM #8
- Join Date
- Feb 2017
- Posts
- 3,463
Please stay away from contacting me to cobroker an SBA. Way too annoying and time-consuming to cobroker and too low of commission to split. I have other types of products that make far more money and take far less headspace than MCAs. This particular deal would be ideal, but I'm definitely not doing an SBA
Everyone always forgets to ask: Is there senior debt already? A LOC or SBA that's already there and that's why they took an MCA? "First position" can also mean "first position MCA" or "first position UCC" depending on who you ask.
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11-16-2023, 12:41 PM #9
- Join Date
- Feb 2019
- Posts
- 209
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11-16-2023, 01:07 PM #10
Bro....I co-broker all my SBA deals.
I have 6+ SBA lenders I use
Some pay 2 points plus 1.75 referral fee
Some pay 2 points plus 1% referral fee
Some pay only 2 points.
Brokers can charge 3% PSF but I make it clear to them that can't be claimed as a SBA loan fee..
It must be a separate function from obtaining a SBA loan as the SBA contract the client signs CLEARLY STATES "I didn't pay a separate fee to obtain this loan".
I do not take part in ANY PSF fee from the broker.
And I split my fees 50%....includes the SBA 2% and the referral fee paid by the lender.
So on many of my SBA loans a broker can make almost 2% plus their 3% PSF fee is they so decide to go that route. That's their choice and I stay out of that.
And the 2% SBA fee is up to $1MM....anything over $1MM, you only get .25%
And I use a Non-bank SBA lender that can collateralize personal assets, and also have SBA lenders that can do truckers and contractors.Last edited by Olderguy; 11-16-2023 at 02:08 PM.
Steve Benjamin
Professional Business Loans
522 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.
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11-16-2023, 01:44 PM #11
- Join Date
- Feb 2017
- Posts
- 3,463
Let me clarify. I am doing a $1.8mm SBA on real estate co-brokering and they're paying 1.25%, which I'm splitting as well. However, they are really a lot of work to focus on them when there's a lot of money to be made from factoring and this other type of financing I'm involved with. It's way easier to refer you to bank who I know do SBAs. Unless it truly is a slam dunk. Anyone can contact me to speak about this other type financing, it's really sweet deal and pays waaaay better.
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11-16-2023, 04:21 PM #12
- Join Date
- Feb 2017
- Posts
- 3,463
And yet again proving that the SBA stuff is always more trouble than it's worth. Huge financial backlog and taxes due to her mother's declining health from 5 years ago and she's working through it. If she had just filled out the 8821's two weeks ago we would have saved a lot of heartbreak. Now we're pivoting to hard money until we have the permanent take-out. (SIGH)
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