[Incbiz440]

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.

[Yankeeman07]

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.

IMO, Why would any sane business owner agree to paying back 54 cents on the $$ for funds?

A quick answer if the financials can be cleaned up would be to look at a Bolt Express

[Olderguy]

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.

[Incbiz440]

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.

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.

[Olderguy]

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.

[Incbiz440]

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.

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.

[Yankeeman07]

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.

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?

[Incbiz440]

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?

Absolutely, ultimately getting on a better financial track is the optimal solution. Bandaiding is not a long term path to stability.

[Olderguy]

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.

[SBF]

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.

[IMINAMEETING]

Any assets?