Results 1 to 12 of 12
Threaded View
-
04-16-2015, 03:03 PM #12jotucker1983Guest
John Pedersen,
Hello, I have a client looking to consolidate 2 cashflow loans.
One loan is approx $95K (early $5K payoff bonus) and the other is a second position stack at approx $35k.
Gross income for the restaurant was around $250K for March.
Who would be the best lender, to negotiate a decent rate and consolidation for our client.
We do a lot of business with them so looking to get them good deal as can be had.
The only way he's reasonably being approved for that amount was if he was doing about $4 million a year in gross sales and the file is clean, which means his fico score is good, very low NSFs, no major liens (taxes/judgments), no bankruptcies, and no landlord issues.
Does he do $4 million a year? If he does, I can work the deal for you and if it closes, we can split the upfront commission 70/30 (70% to me and 30% to you) and you can have all of his on-going renewal commission.
a few months ago they were looking for cash flow because they were coming into season, to maximize profit, improvements etc... now the payments are a little suffocating, they are looking to have a longer term loan with 1 payment that is smaller than what it is now.
They already had the large cashflow loan, they needed more and the first position wasn't budging. So I reached out to another lender and they stacked the small loan on the back. I let both lenders know the client was seeking a consolidation, but both refused. I've spoken with other lenders and many of them seem ok with another stack, but this is not what we want for a host of reasons.
2nd position deals "might" work depending on the circumstances of the client at the time, such as their cashflow, average bank balances, ending bank balances, etc. But you have to be careful with those types of deals because if the payments collectively are set too high, then it could cause cashflow issues with the merchant in terms of NSFs, Overdrafts, low Bank Balances, Zero or Negative monthly ending bank balances, etc.
Give or take, you don't want to have cash advances taking anymore than 25% of the merchant's monthly gross (including 1st and 2nd positions), anything over that would likely start to cause cashflow issues. Give or take, a good range to stay in is under 10% of their monthly gross.
But yes, I can work the deal for you if you wanted, but unless he's doing $4 million a year and the file is clean (which it probably isn't clean because you said the merchant is having a hard time making payments so I assume the banks aren't good), then there's nothing that can be done for this file. Tell the merchant that he's going to have to "hold out" and keep paying off the balances.
Similar Threads
-
Bar&Grill 25k Monthly Deposit 500 fico 9k monthly on Credit Card Processing
By wallerbusiness in forum Deal BinReplies: 2Last Post: 04-14-2015, 08:44 AM -
Need financing of 200k to buy a successful restaurant...
By Ash Sheehan in forum Business LoansReplies: 11Last Post: 02-21-2015, 07:33 AM -
500k average monthly gross, needs to consolidate.
By Miller192 in forum Deal BinReplies: 3Last Post: 01-13-2015, 11:16 PM -
2.2 Million A Year Restaurant with 2 positions Looking for 200K Net
By FlowWorkCap in forum Deal BinReplies: 7Last Post: 12-30-2014, 04:15 PM -
Standard Agent commission from the ISO gross
By Hovis in forum Merchant Cash AdvanceReplies: 32Last Post: 04-29-2014, 12:06 PM