Large Plumbing Contractor

**John Galt** · 10-17-2015, 12:25 PM

8 year old plumbing contractor. Has 6 stacks total 240K. Looking for consolidation. 1/2 paid down. 509k deposits last month, average over 300K. 1,657M so far this year. Book Value 880K. 15K cc monthly. Has backlog of work. No Nsfs, average balances over 10K. Fico under 600.

**SCCNY** · 10-17-2015, 02:40 PM

No cash advance company is going to look at this unless you looking for a seventh haha.... With balances larger than their monthly no chance. With those kind of daily balances though merchant may be profitable and a term loan may be your best bet

**bdshaw** · 10-17-2015, 03:07 PM

This cpmpany could be a factoring client John.

**John Galt** · 10-17-2015, 03:37 PM

I know Robert and have suggested it also. Even sent him one of your apps.

**John Galt** · 10-17-2015, 03:48 PM

Ok. Simple Math: 500K last month....average 300K and can do much better with current government contracts, had over 400K in MCas with the biggies, now 240K. Still ok for MCAs, factoring, term, non SBAs. I hate stacking and didn't stack, but that's his situation and we all know not lot of Funders will go to a 7th much less over 35%.....this is one of those companies at the precipice of bankruptcy, but if a lender consolidates since he is current and paying 6 positions about 5k a day and has already paid down 1/2, he could make it. All his MCAs are 90 day deals. Longer term he can make it and be pulled from the brink of the whirlpool. Waiting on term approvals and factoring approvals, can also do his payroll and give him 30-90 day terms on it. Was looking for a faster bandaid.

**RichardGerard** · 10-17-2015, 03:54 PM

With contracts and high receivables client may well qualify for an Asset Based Line of Credit. Clients are often resistant to factoring even though there are ways to do it with soft notification (and/or non notification).

Please feel free to reach out to me to discuss and perhaps do a conference call with client. This is a situation we can likely remedy... swiftly.

Richard

www.businesscapitalconsultants.com

Direct 516 510 3855

**SCCNY** · 10-17-2015, 03:58 PM

Power Up may be an option for this deal. Just need over like 620 credit i think but they just require 12 months banks and will buy out any number of balances without merchant having to net anything. I had a merchant wit $210 k in balances they gave him $200k approval and waited for his balances to come down then funded him

**John Galt** · 10-17-2015, 04:02 PM

My biggest factors are AGR, Capital (Wells) and Crestmark. Can your's compete with those rates? Usually 90% upfront and 5% above prime or so. Sometime 4% above libor. 90 days before charge off. Balance when customer pays bank. I must admit even as a CFP I never understood the difference between a factor and an ABLOC, but I have factored for over 10 years mostly for staffing companies and my first MCA product sold was in 85 for Transmedia. He doesn't care about notification.

**John Galt** · 10-17-2015, 04:06 PM

Thanks SCCNY, but fico is under 570. Working on it and PAydex too. And I did send it to Powerup already, but don't hold up alot of hope..maybe have to bring in a partner or something.

**SCCNY** · 10-17-2015, 04:38 PM

yea good luck man is definitely tough with multiple positions and sub 600 FICO... Seems like banks are strong though please post here if you actually get it done would be good to know who can do that.

**FUNd** · 10-17-2015, 04:45 PM

6 positions...smh

**SCCNY** · 10-17-2015, 04:47 PM

Originally Posted by FUNd

6 positions...smh

Definitely not a good look lol

**John Galt** · 10-17-2015, 04:56 PM

Not a newbie, and if it were easy- wouldn't post it on DF. Unlikely to be approved quick but will do factoring and payroll funding but neither is quick.

**John Galt** · 10-17-2015, 06:19 PM

shaking mine too but hate to blow off a 250K acct. Maybe get one (at best) a month.

**SCCNY** · 10-17-2015, 06:35 PM

As i said man good luck no hate from this direction

**golf2014** · 10-17-2015, 07:44 PM

credit score not high enough and the biggest issue is he loves taking advances over n over...that's the killer on my eyes. a funding company rather give him a small advance then be on losing side of a 6 figure advance. he is doing big numbers but always needs cash...this spells disaster. good lk with your search.

**John Galt** · 10-17-2015, 09:14 PM

Without a question you're right. which is why I posted.......this is our market, for the moment. Don't think any client wants to take advances over and over and we become the pimp they buy from and the siphon that takes them down. Personally I hope to "rescue them" to do other traditional stuff,

**golf2014** · 10-18-2015, 12:42 AM

john..in my opinion if he got one advance to consolidate the others..he would take a second etc. what concerns me is he has a backlog of work..but still needs advances. I've seen stackers always go back to stacking..lol. anyways..good lk

**dpFund** · 10-18-2015, 10:01 AM

John - I just responded to this deal via email (not sure if this is you or not, since I'm guessing John Galt is not your real name...since I read Anne Rayn novels too). :-)

I am a direct lender and do a lot of MCA consolidations (consolidated $1.5M last week, alone). This client has daily payments of $5,046 (monthly of $106k) and total current balances of $242k. If we consolidated him I can get him down to $26,430k monthly, or a quarter of what he is paying. My average is about one-third of what clients are paying, for MCA consolidations.

Monthly payments (not daily). He can prepay remaining balance any time after six months, with no fees/penalties or interest. Principle only. Cheaper than Power Up, but I require more documentation and Due Diligence.

No stacking allowed and we enforce. This is only for companies that are healthy and want out from MCA dailies.

I need to see P&L and Balance Sheet for 2014 and 2015 YTD to determine the health of his business and see if it makes sense to take next steps.

If you are not the gentleman that I just had the email correspondence with, I apologize but I will need to stick with him since he brought it to me first.

If you or anyone has any questions about how we handle MCA consolidations, feel free to email. I will have a slight delay in responding as I will be out of the office most of the day Monday and Tues.

Thanks,

Dan Page
dan@fundingstrategypartners.com

**SCCNY** · 10-18-2015, 12:01 PM

Originally Posted by dpFund

John - I just responded to this deal via email (not sure if this is you or not, since I'm guessing John Galt is not your real name...since I read Anne Rayn novels too). :-)

I am a direct lender and do a lot of MCA consolidations (consolidated $1.5M last week, alone). This client has daily payments of $5,046 (monthly of $106k) and total current balances of $242k. If we consolidated him I can get him down to $26,430k monthly, or a quarter of what he is paying. My average is about one-third of what clients are paying, for MCA consolidations.

Monthly payments (not daily). He can prepay remaining balance any time after six months, with no fees/penalties or interest. Principle only. Cheaper than Power Up, but I require more documentation and Due Diligence.

No stacking allowed and we enforce. This is only for companies that are healthy and want out from MCA dailies.

I need to see P&L and Balance Sheet for 2014 and 2015 YTD to determine the health of his business and see if it makes sense to take next steps.

If you are not the gentleman that I just had the email correspondence with, I apologize but I will need to stick with him since he brought it to me first.

If you or anyone has any questions about how we handle MCA consolidations, feel free to email. I will have a slight delay in responding as I will be out of the office most of the day Monday and Tues.

Thanks,

Dan Page
dan@fundingstrategypartners.com

Dan ive seen you on here before and i have meant to give you a call. Seems like you have a good product what kind of documents so you require for a submission?

**John Galt** · 10-18-2015, 01:41 PM

I did respond to your PM. Forwarding P&Ls and Balance as well as tax returns, YTD and ARs.
PS: FYI, it's "Ayn Rand". She was not just a novelist, she created a movement which still exists today after 65 years. There's alot of us around especially now that it's happened the way she predicted it. The newest redoing of her book/movie just played out in 3 parts last year. Kudos, only one person Amanda (whoiskingsely) ever got it (I think).

**rick_clsfunding** · 10-18-2015, 03:58 PM

Originally Posted by John Galt

Kudos, only one person Amanda (whoiskingsely) ever got it (I think).

umm, not quite...

**John Galt** · 10-18-2015, 04:28 PM

Ok, good to know some intelligent people on this site. Another prescient was 1984 (Eric Blair)....was originally going to use Winston Smith as a handle. Again in 1949, a book that foretold the future. "He who controls the past controls the future".

**dpFund** · 10-18-2015, 10:05 PM

Originally Posted by SCCNY

Dan ive seen you on here before and i have meant to give you a call. Seems like you have a good product what kind of documents so you require for a submission?

Hey SCCNY - With the following docs, I can give you some quick feedback one way or the other:

1.) P&L and Balance Sheet for 2014 and 2105 (NOT tax returns, but actual P&L and Balance Sheet). This is crucial
2.) Six months Banks
3.) Debt schedule, including total amount owed, to whom and daily payments
4.) Brief description of client and what they are looking for

Best,

Dan Page
dan@fundingstrategypartners.com

**dpFund** · 10-18-2015, 10:21 PM

Originally Posted by John Galt

I did respond to your PM. Forwarding P&Ls and Balance as well as tax returns, YTD and ARs.
PS: FYI, it's "Ayn Rand". She was not just a novelist, she created a movement which still exists today after 65 years. There's alot of us around especially now that it's happened the way she predicted it. The newest redoing of her book/movie just played out in 3 parts last year. Kudos, only one person Amanda (whoiskingsely) ever got it (I think).

Sounds good. Yes, my fingers moved faster than my brain. "Ayn", not "Anne". I read Atlas Shrugged and the Fountainhead 30 years ago and they still stay with me.

Have not yet received P&L and Balance Sheet. Please send to dan@fundingstrategypartners.com.

Thanks,

Dan

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