[lendlend]

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.

[Olderguy]

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.

[ZREK]

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.

[Yankeeman07]

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.

How recent is the funding - MCA I'm assuming?

With a FICO of 800 - assuming their are no crickets in the woodpile, you should be advising
the biz owner to look towards a SBA type product or a Non Bank Term Loan with a term loan of 5 years, possibly longer.

[Zonefund]

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.

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.

[Zonefund]

Also, winglake. They'll touch this. Easily. Low commission though.

[Ehenek]

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.

[abfunders]

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.

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.

[mistamca]

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.

I'm curious. What would you consider as another product that is "bank quality" and solves the same pain point that a term loan solves?

I think SBAs are amazing once you have a strong network and process but it takes years to build it up

[Olderguy]

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.

[abfunders]

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.

[abfunders]

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.

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)