[abcloser]

The factor would pay off his mca's if he has 7-8mil on the AR you would not need to subordinate anything. something is not adding up here

This is what I'm trying to accomplish. The reason the ucc would need to be subordinate is because he has a $14mm loan with some credit union and they have a senior lien

[abfunders]

This is what I'm trying to accomplish. The reason the ucc would need to be subordinate is because he has a $14mm loan with some credit union and they have a senior lien

How much equity is available in the RE? I'm not sure that there's very much, and the credit union has $14mm, which definitely includes the AR. Squeezing out $1mm out of the real estate with WBL might be a way out, IF there's enough equity. There is one lender I know of who can factor in a 2nd position, but they'd have to take out all of the MCAs, the question would then be.... how much is left for working capital or are they just digging themselves into a deeper hole? These deals often are too complicated before they're in too much MCA debt before people with level heads prevail.

[Sachip24]

This is what I'm trying to accomplish. The reason the ucc would need to be subordinate is because he has a $14mm loan with some credit union and they have a senior lien

got it..is it an all asset lien? the credit union maybe willing to do a carve out on the AR so you can get it done. Equipment financing deal could also possibly work if he owns his equipment free and clear

[abfunders]

got it..is it an all asset lien? the credit union maybe willing to do a carve out on the AR so you can get it done. Equipment financing deal could also possibly work if he owns his equipment free and clear

The other problem is the OP pointed out that he has really bad credit, so equipment financing is going to be difficult, even if the credit union doesn't have a blanket on that, too, which is doubtful. Hate to be pessimistic, but we have to know our limitations.

[abcloser]

got it..is it an all asset lien? the credit union maybe willing to do a carve out on the AR so you can get it done. Equipment financing deal could also possibly work if he owns his equipment free and clear

Equipment financing was my first option. 5 mins into the call they say oh you have a senior lien ? yea we cant come behind that. Credit Union supposedly cant carve out AR and looks to be a blanket. Trying to find some factoring company thats comfortable with using AR and coming behind the cu

Thanks guys! Appreciate the creative thinking

[Sachip24]

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