[Equity One Solutions]

Good Afternoon DF! I am working with a client that is looking for a term loan. Recently was declined from an SBA due to tax returns. Client is looking for $500,000-750,000. This issue I am seeing is he has no collateral and limited financials. TIB is 1994 and works in manufacturing and
purpose for funds is for new product and inventory which should help grow revenue tremendously. Any idea of where to go or what client may qualify for on term?

[jpctl]

Term loans usually require at least 100K in monthly revenue. They could potentially qualify for an MCA "term loan" that's for a 12-month period, if they have 750+ credit. Not having the tax returns makes it more difficult. Your client might have more success finding a private lender with more flexible underwriting. The best-case scenario would be to find an investor who's willing to give him long-term venture capital or equity financing.

[SBF]

What is the monthly revenue?
Credit score?
Do they have real estate with at least 70% equity (residential or commercial)?
Term lenders look at the same data that SBA looks at (mostly). If tax returns are weak, it won't work for a term loan.
Could try Libertas/Mulligan/Kapitus/Fora/Arf for 24 month term to get some of the capital.
But, if they have a ton of equity, they won't need to.

[LJH365]

If SBA declined specifically due to tax returns, the key question is what “limited financials” actually means here.

Is it low net income after write-offs, or missing/incomplete filings? That changes everything from an underwriting standpoint.

Also, with TIB since 1994 in manufacturing, there should be something to work with - whether that’s consistent operating history, internal financials, or asset base.

More importantly, what’s the story behind the new product and inventory build? Is there existing demand, contracts, or a clear revenue ramp tied to this?

Without a strong narrative supported by numbers, any “term loan” is going to be a stretch regardless of lender type.

Curious what the full picture looks like.