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07-17-2024, 01:18 PM #1
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- Jan 2019
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- 45
Does anyone handle construction Term Loans?
Hi everyone,
I’m working on a construction deal with a merchant consistently generating about $700K a month. He is seeking a $300K term loan. The only collateral he has is his primary residence, valued at approximately $1.1M. Additionally, he has about $3.1M in receivables currently under contract. If anyone can assist with this type of financing, it would be greatly appreciated
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07-17-2024, 01:47 PM #2
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- Feb 2017
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- 3,463
"Receivables" or "Under contract"? Meaning, does someone owe him money for work done, or does he need capital to get the job started? Two very different things. Ignore what the client thinks he wants, there's actually way better products out there for this than a classic term loan in this instance. Easy to sell, just have to pitch it to the merchant. I love these types of deals.
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07-17-2024, 02:08 PM #3
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- Jun 2024
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- 1
What state is the property, what is the amount owed via the currant mortgage, and est credit score?
I'm working with a mortgage company who does 15 - 30 yr terms, true apr etc etc
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07-17-2024, 02:40 PM #4
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- Jan 2019
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Thank you for the response. To answer your question, the $3.1M is currently under contract which he is collecting on.
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07-17-2024, 02:42 PM #5
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- Jan 2019
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- 45
Property is in TX and he owes about 600k. Credit score is above 720+
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07-17-2024, 03:08 PM #6
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- Feb 2017
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07-17-2024, 03:17 PM #7
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- Mar 2015
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- Boynton Beach
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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
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07-17-2024, 03:46 PM #8
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- Feb 2017
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We can stop speculating, the AR is from private home builders. It's all private and none of it is factorable. He's a general contractor for luxury home building. He does a lot of homes at once and he gets paid in chunks. I appreciate the call OP.
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07-17-2024, 03:47 PM #9
Just FYI...any factoring A/R that is over 90 days goes back to the merchant to collect.
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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07-18-2024, 05:08 AM #10
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- Mar 2015
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- Boynton Beach
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[QUOTE=Olderguy;193817]Just FYI...any factoring A/R that is over 90 days goes back to the merchant to collect.[/QUOTE
Not in all cases. It depends on the terms of recourse and if it's a recourse or non-recourse deal. If it's non-recourse the factor owns the invoice and the risk is on the factor. Recourse: If the terms of recourse are 60 days past due date the invoices can go past 90 days to the terms. If they do extend past terms the invoice is sold back to the company or replaced with another invoice. If a % of all invoices with the end customer go past recourse date-all invoices may become ineligible.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
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07-18-2024, 08:36 AM #11
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07-18-2024, 08:48 AM #12
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- Mar 2015
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- Boynton Beach
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Correct. If the terms with the end customer are N60, N90, and even N120 we can certainly accommodate for the right customers and a timely recourse period post term date. The reason some non-bank factors cannot go past N90 is because of the limitations within their credit policy and line with THEIR lender. Some lenders that lend to or re-factor other factors do not allow them to go past 90 day recourse regardless of terms with end customers.
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
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07-19-2024, 04:19 PM #13
- Join Date
- Jul 2024
- Posts
- 4
Hello, we can help you, we offer a LOC service for construction. Feel free to reach out, we'd love to help.
Midwestern Financial Solutions
Natalia Durham - BDO
(305) 239-7681
email-*nati@midwesternfinancialsolutions.com
MidwesternFinancialSolutions.com
Where your box ends ours begins.
https://www.linkedin.com/company/mid.../?feedView=all
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