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  1. #1
    Senior Member Reputation points: 8723 helpinghand's Avatar
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    A-Paper competitive $100k deal

    Hi, we have a client that received an offer from an A-paper lender but he wants us to continue shopping this around for the best deal on the street. Here are the terms:

    $100k, 48 month term, 7.29% ($2,901 monthly)

    Client is willing to pay a higher rate if they can get more money. Currently doing about $30k revenue/month with very clean personal credit (680ish) and no outstanding business debt.

    Think any of you can beat this? Or do you know of any A-Paper lenders that would be competitive? I'm skeptical given how solid this deal is but willing to entertain in order to provide the best service to our client.

    Thanks

  2. #2
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    That is real good, I don't see you getting much better than that unless they have collateral

  3. #3
    Senior Member Reputation points: 8723 helpinghand's Avatar
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    My thoughts exactly.

  4. #4
    pm sent

  5. #5
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    Quote Originally Posted by helpinghand View Post
    Hi, we have a client that received an offer from an A-paper lender but he wants us to continue shopping this around for the best deal on the street. Here are the terms:

    $100k, 48 month term, 7.29% ($2,901 monthly)

    Client is willing to pay a higher rate if they can get more money. Currently doing about $30k revenue/month with very clean personal credit (680ish) and no outstanding business debt.

    Think any of you can beat this? Or do you know of any A-Paper lenders that would be competitive? I'm skeptical given how solid this deal is but willing to entertain in order to provide the best service to our client.

    Thanks
    Celtic Bank 10 year notes not sure if they would do 100k with 30k monthly revenues

  6. #6
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    Don't catch the blame for your lender's error or worse

    Quote Originally Posted by helpinghand View Post
    Hi, we have a client that received an offer from an A-paper lender but he wants us to continue shopping this around for the best deal on the street. Here are the terms:

    $100k, 48 month term, 7.29% ($2,901 monthly)

    Client is willing to pay a higher rate if they can get more money. Currently doing about $30k revenue/month with very clean personal credit (680ish) and no outstanding business debt.

    Think any of you can beat this? Or do you know of any A-Paper lenders that would be competitive? I'm skeptical given how solid this deal is but willing to entertain in order to provide the best service to our client.

    Thanks
    I think your client can do much better.
    I calculate the APR for this loan as 17.3% a full 10 points over what he lender is quoting you.
    a 7.3% rate would yield $2,408 monthly.
    Regardless of what you decide to do you should ask the lender why they are either doing a poor job of calculating or are they just lying to make their deal look good? Of course if your client finds out they will blame you.
    Bob Shaw
    734.929.3800
    rshaw@advancecredit.com

  7. #7
    Senior Member Reputation points: 30475 Zach's Avatar
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    The lender quoted him a simple interest rate (or an ALR, depending on the transaction). Show him on an amortization calculator how the lender lied to him, and they will lose faith/trust in him while you secure yourself time to shop it.

    Shop it to equipment financing companies (I'm assuming this deal is for a specific piece of equipment or vehicle), and pray for a low buy rate... or make your money on an FMV or doc fees.
    Zachary Ramirez – CEO
    Phone: 562-391-7099
    Email: zach@zacharyjosephramirez.com

    1661 N. Raymond Ave #265
    Anaheim CA 92801

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