Results 1 to 14 of 14
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04-22-2024, 06:54 PM #1
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Looking for better deal at $100k
Have an approval in hand for a client, but would like to find them something better if possible.
1.54 sell at 1.5 year term w/weekly pay for a little over $100k.
Client profile, very well established tech consulting biz making a little south of a million annually, showing a small loss, just south of 700 on credit, 2 existing UCCs, no MCA history.
Tried some other options but got shot down on liquidity per statements.
Clients timeline is also short.
Better deal would ideally be a longer term at less cost, but open to any possible mix of improvement - cheaper cost, longer term/easier on cash flow, etc.
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04-23-2024, 12:08 AM #2
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Dave Lambert, Business Development
Managed Services Provider
https://www.tsys.com
https://www.united-internet.com
https://www.nmi.com
dave@fcbankcard.com
Office: 727-233-1111
Skype: fc-financial
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04-23-2024, 12:17 AM #3
I second Dave's comment.
What are the UCC's on - with no MCA history.
What is the issue?....can't recommend a loan product out further information.
I think Bolt would need a higher Fico.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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04-23-2024, 03:42 AM #4
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Agreed (to both of you). There's a drag on cash flow from other debt and client's timeline is short. For Bolt I think they're up to a 700 minimum now, you are correct. Other UCCs are from a long standing bank loan and a small scored term loan with good terms.
I would prefer to find something more affordable or at least with more reasonable repayment terms.
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04-23-2024, 11:42 AM #5
Last thing they need is more MCA debt if they have cash flow issues.
Need to fix their financials.
And why the short timelines?
Reach out as this doesn't make sense.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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04-23-2024, 01:57 PM #6
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Sure it does as I'm sure you and everyone here sees it on a regular basis.
Business is not functioning optimally, over time client fills in gaps with borrowing, eventually they hit a cash flow crunch and it becomes a time issue because they need to pay rent or make payroll or any other number of things and they go looking for more funds.
The long term answer is to address whatever issues they have that put them there in the first place. The short term problem still exists today.
I used to say that I wouldn't do that type of financing at all and did my best to try slow down and take a more affordable route, or see what the underlying issue was. What that resulted in was clients disappearing for a couple of months, resurfacing with their docs, and saying by the way I had to take out this loan/advance in the meantime. The result was the same except I gave away business.
At least if I work with clients on these types of deals I can explain the funding to the client so they understand everything and can make their own decision, as opposed to the next guy or funder rep who glosses over the negative and accentuates the positive to get it closed. We can ask questions like does this solve a problem or make it bigger? If you do this, what's your exit strategy?
Believe me, I would happily choose to get paid less and have a better deal to present to a client. Unfortunately here I made that effort without success.
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04-23-2024, 03:44 PM #7
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What steps can the business owner take to increase cash flow - Increase sales, cut expenses, eliminate excess inventory ?
This may not be items you want to get involved with , but, many times the owner has to look inward - they cannot borrow
themselves out of trouble - how did they arrive at this spot today?Dave Lambert, Business Development
Managed Services Provider
https://www.tsys.com
https://www.united-internet.com
https://www.nmi.com
dave@fcbankcard.com
Office: 727-233-1111
Skype: fc-financial
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04-23-2024, 04:06 PM #8
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04-23-2024, 04:30 PM #9
Business owners know their products but they don't know how to run their businesses.
They need accounting services.
Reach out if you need help here....I have access to a remote team.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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04-29-2024, 10:46 PM #10
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That sounds like a Rapid offer. Only way to reduce the cost would be a shorter term.. Funds So Fast, VitalCap and others have good programs in the 1.28 - 1.38 range. Negotiate for an agressive early pay discount.
After funding, I would try an SBA loan at 11.5% on a 10 year term and get this and the other debt refinanced. Add on some working capital for marketing and whatever else is needed to help them reduce costs and improve the other areas.
The accounting services that Steve mentioned would be very smart to do too. Always good to get the financials in tip top shape to make the best impression to underwriting.Shannon Harris
Funding Specialist
888-705-8818 phone
239-790-2664 fax
Shannon@StellarBusinessFunding.com
www.stellarbusinessfunding.com
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05-03-2024, 02:23 AM #11
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- Apr 2023
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Any assets?
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05-23-2024, 12:56 PM #12
Reputation points: 10
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- Jul 2020
- Location
- Connecticut
- Posts
- 2
Industry terms
Unfortunately, most of the top tier lenders in the industry are putting out offers on the higher end of their rate threshold due to the current economic climate. Rates are high across the board and those higher rates are passed down to lenders from their credit facilities. I see a lot of A paper lenders come back with sell rates close to 1.50 for their 18 month product. Anyone who has been in this industry for any amount of time knows that if a business is in a cash flow pinch that it will be much more beneficial for them to pay a higher rate (closer to 1.50) for an 18 month program as opposed to anything in the 1.30 - 1.40 range that would most certainly cap out at 12 months. The lower payment is what will ultimately help this client the most.
It does seem like you have had a few declines for this merchant at other shops. I would like to say that we may be able to come in at a lower rate for an 18 month cost, but I would certainly need more information. Also, how many points are built into that 1.54 offer?
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05-28-2024, 01:09 PM #13
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Reach out to me if this has not been funded yet.
Sam
406-282-1404Last edited by SamuelH; 05-28-2024 at 01:20 PM.
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05-28-2024, 03:41 PM #14
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- Apr 2024
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Sent you a PM
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