[John Pedersen]

ok, can you explain? I was under impression many lenders lend up to 100% of monthly gross. Loans are $130K combined which is less than 50% of $250K monthly gross.

Looking to understand process of consolidation. I see many companies offering multiple stack positions but not consolidations. thanks

[MCNetwork]

ok, can you explain? I was under impression many lenders lend up to 100% of monthly gross. Loans are $130K combined which is less than 50% of $250K monthly gross.

Looking to understand process of consolidation. I see many companies offering multiple stack positions but not consolidations. thanks

In order to refinance a merchant, lenders want him to NET 50% of the proceeds at a minimum. That means your merchant has to be approved for $260K. In order to qualify for $260K over a 12 month term he needs to be doing about $3 million per year. At a 12 month 1.30, this merchant would NET $130K and have a payback of $338K. The exposure to the lender for this type of transaction is huge and that's why many of them put a cap on the amount they are willing to refinance. The lender who chooses to accept this transaction will have balls of steel and your merchant better be squeaky clean and be in very strong financial shape in order to have a shot at getting approved. Most likely your merchant is in poor financial shape, hence the stacked loans.