Cross Collateralize
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  1. #1

    Cross Collateralize

    Who are the funders that are willing to cross collateralize different entities?

  2. #2
    Senior Member Reputation points: 118256 ridextreme's Avatar
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    For hard money loans or MCAs?

  3. #3
    Senior Member Reputation points: 78886 Olderguy's Avatar
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    I am assuming different EIN, different businesses for one business loan. A corp PG might resolve that each entity. Hard money real estate, yes that's a blanket lien. But will have to figure out vesting....maybe a new llc with these entities under that llc.
    Last edited by Olderguy; 07-10-2024 at 10:13 AM.
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  4. #4
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    It depends on the industry, how it is structured, and assets to be considered.

    -If a holding company owns all the businesses, you can finance at the holding company level and collateralize all assets for all related holding companies,
    -If they are separate EINs you will have to finance all of them separately, but the lender will likely have corporate guarantees for all entities.

    I do this all the time with asset based lines of credit including AR, Inventory, and M&E. I also do this for factoring or ledgered facilities-same assets.

    KH
    Kevin Henry
    VP-Business Development
    Seacoast Business Funding, a division of Seacoast Bank
    561-850-9346
    Kevin.Henry@SeacoastBF.com
    1880 N Congress Ave., Suite 404
    Boynton Beach, FL 33426

  5. #5
    Merchant owns two gas stations. Separate entities. One does 250k a month and the other does 450k. He wants to fund the one doing 250k, but it has lower balances. He's willing to put the one doing 450k up for collateral. Looking for MCA deal.

  6. #6
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    Quote Originally Posted by ifundtrucking View Post
    Merchant owns two gas stations. Separate entities. One does 250k a month and the other does 450k. He wants to fund the one doing 250k, but it has lower balances. He's willing to put the one doing 450k up for collateral. Looking for MCA deal.
    Obviously not for us
    Kevin Henry
    VP-Business Development
    Seacoast Business Funding, a division of Seacoast Bank
    561-850-9346
    Kevin.Henry@SeacoastBF.com
    1880 N Congress Ave., Suite 404
    Boynton Beach, FL 33426

  7. #7
    Quote Originally Posted by ifundtrucking View Post
    Merchant owns two gas stations. Separate entities. One does 250k a month and the other does 450k. He wants to fund the one doing 250k, but it has lower balances. He's willing to put the one doing 450k up for collateral. Looking for MCA deal.
    We will gladly have a look at the file. Send me an email to alex@thorocorp.com and we will take it from there.

  8. #8
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    Quote Originally Posted by ifundtrucking View Post
    Merchant owns two gas stations. Separate entities. One does 250k a month and the other does 450k. He wants to fund the one doing 250k, but it has lower balances. He's willing to put the one doing 450k up for collateral. Looking for MCA deal.
    Are the gas and the convenience store accounts separate? Just throwing this question out there for you to understand that 450k combined vs 450k in just convenience store are completely separate files!

  9. #9
    Yes separate accounts. Separate entities.

  10. #10
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    Quote Originally Posted by ifundtrucking View Post
    Yes separate accounts. Separate entities.
    He has two gas stations, different entities.
    I'm saying that funders don't look at the deposits for gas, because the profit margins are SO small.
    They need to see the convenience store deposits only.
    So what I'm saying more clearly is: Are there 4 bank statements (2 for each), or only 2 (1 for each)?

  11. #11
    Mint Funding! Reach out to us- info is below.
    --
    --

    Ashley Bisono / ISO Manager
    (347) 699-1140
    ashley@mintfunding.com
    www.MintFunding.com

  12. #12
    Senior Member Reputation points: 118256 ridextreme's Avatar
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    Quote Originally Posted by ifundtrucking View Post
    Yes separate accounts. Separate entities.
    1. Does the gas station have a convenience store?
    2. Do they do auto repair?
    3. Do the 250K and 450K deposits include gasoline sales?

  13. #13
    Quote Originally Posted by AshleyMintFunding View Post
    Mint Funding! Reach out to us- info is below.
    Hey Ashley, I have no game in this but just wanted to say I was reviewing your website and it is an absolute wet dream for an attorney general. Thanks for the blast from the past, It's like visiting an MCA site prior to 2016 before much of MCA case law was cemented.

  14. #14
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    Quote Originally Posted by Cash Advance Kid View Post
    Hey Ashley, I have no game in this but just wanted to say I was reviewing your website and it is an absolute wet dream for an attorney general. Thanks for the blast from the past, It's like visiting an MCA site prior to 2016 before much of MCA case law was cemented.
    How so?

  15. #15
    We do. Email Laura@fundprollc.com to sign up.

  16. #16
    Quote Originally Posted by Zonefund View Post
    How so?

    Here's one example- they use the word LENDER when describing cash advances. Here's a second one- they refer to remittances as a repayment and put it in nice bold letters. Thats just two examples. Hope this helps.

  17. #17
    Quote Originally Posted by KollectionsGuy View Post
    Here's one example- they use the word LENDER when describing cash advances. Here's a second one- they refer to remittances as a repayment and put it in nice bold letters. Thats just two examples. Hope this helps.
    Apparently they are BBB accredited bro.... Says so on the website must be legit

  18. #18
    Senior Member Reputation points: 118256 ridextreme's Avatar
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    Quote Originally Posted by JonathanHendrix View Post
    Apparently they are BBB accredited bro.... Says so on the website must be legit
    I would never become "BBB accredited". They charge a hefty up front fee plus an annual fee to be "accredited". screw them!

  19. #19
    Quote Originally Posted by ridextreme View Post
    I would never become "BBB accredited". They charge a hefty up front fee plus an annual fee to be "accredited". screw them!
    That's why you do it the mint funding strategy, just say it on your website.

  20. #20
    TVT is a great one to pitch when you want to cross collateralize and most C Paper funders will look at that as long as you have all the docs and can prove that all will be well. Paint the picture for them and make it make sense. Should be something doable.

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