[#1closer]

[QUOTE=TheChoice;20645]Everybody hates excessive stacking,yet i find little relief by lenders in helping alleviate a company with multiple positions despite low balances on advances.

I.E.

Auto repair:
30-50k month
Clean Ledgers
Three bureaus range from high 5s(Equifax) to low 700s(trans)

Who would be willing to buy out three positions totaling 13k? I know a few companies that would buy out two, but not three…any suggestions?[/QUOTE
pm you check inbox

[dpFund]

So who will do these types of consolidations if cashflow and statements look good?

This is quite a long thread but thought I would jump in. While I'm not going to be able to answer all of the questions, I can tell you that as a direct lender, we do a LOT of consolidations. About 75% - 80% of the deals I see are not doable, because the merchant has been stacked so badly they are totally underwater. I'll leave it for the pundits to determine if it is the merchant's fault or the thirsty brokers (I think fault lies in both realms).

When we do fund consolidations (about $4M on the books right now), we extend payments out 12-18 months. It is rare that the MCA lenders provide a discount (or if so, not much of one) so yes, the merchant is paying interest on interest. But in most situations, I can get the merchant's payment down to about one third of what they are paying (we do monthly payments, not daily which is a relief for merchants).

Secondly, we allow the merchant to pay us off any time after six months. No fees, penalties or interest. Just remaining principle.

And yes, we have our own way of preventing them from stacking.

For the right merchant that wants out of the expensive daily payments, it can be a huge relief, and can literally turn their business around.

It might seem counterintuitive, but for the right merchant, I am not as concerned about the number of positions, since I am going to end up in first position when it is all done (I've funded a couple in the last few months that had eight...yes eight positions)

Happy to continue this discussion with anyone who is interested.

Hope this helps.

Best,

Dan Page
Funding Strategy Partners
dan@fundingstrategypartners.com
Direct: (303) 938-8280

[John Galt]

Dan,
Would you consider payroll funding or factoring where a UCC is filed stacking? Would it affect the consolidation decision?

[Seth A]

Power up is currently one of the most active DIRECT FUNDERS . Although we do all types of loans from 1st - 4th positions, our niche is consolidating outstanding loans and lowering daily payments. The average loan in regards to consolidation is $185,000. Our family fund has allocated an additional $85,000,000 for future funding's. We are currently looking to expand and offering our ISO's 6 - 12 % points. Below I have provided an overview of our funding parameters.

- We look for credit scores 550 and above

- The only state we do not fund is CA,RI & TN

- The industries that we do not fund is CAR SALES, CONSTRUCTION GENERAL CONTRACTORS , LEGAL OFFICES & ACCOUNTING OFFICES.

- We cant fund sole proprietorship's ( has to be corp,llc etc.)

- We do all types of loans from 1st to 4th positions

- Our niche is the consolidations, where we look to consolidate outstanding loans and lower daily payments. Average loan amount on consolidations is around $185,000.

- Our loan amounts range from $20,000 up to $500,000

- Our rule is to come back every couple months with additional loans

Contact Info:
Seth A
P (516) 498-9890
F (516) 498-9894