[Kevin Henry-Seacoast]

What would you do ?

I have a merchant who owns a few surgical centers. Rev between their accounts is $2-2.5mm with $7-8 mm in AR

Merchant has approx $1.7mm in mca debt and **** credit. Wants to get rid of his mca debt potentially using his AR but if using a factoring company , their ucc would need to be subordinate, which no one is okay with. No SBA and doesnt want to use property...yet. So im dead in the water I think

What would you guys do ? Any direction you guys suggest I look into ?

Thanks

A couple of items:
-Deposits are sub $3Mil. What is monthly revenue? 7-8Mil of AR seems high unless the revenue somewhat matches.
-Why would a subordination be needed if the MCAs are paid off? Typically the factor would be in first lien position and others would subordinate to the factor.

We don't factor medical receivables. There are a few companies out there that do, but as described makes no sense thus far and somebody needs to look at income statement, balance sheets, and run a lien search.